India's weight on the MSCI Global Standard index has reached a record high, rising 19.2% to 19.8%. India has narrowed the gap with China on the key MSCI index. The changes in index weights will come into effect after markets close on August 30. India's weight could likely rise above 20% at end November.

MSCI has announced HDFC Bank's weightage in the Global Standard index will be increased and that would be done in two tranches. HDFC Bank's current weight in the MSCI EM Index is around 3.8% and Post changes, this could jump to 7.2%-7.5%. The company will maintain HDFC Bank in its indices and bump up the Foreign Inclusion (FIF) Factor for the stock from 0.37 to 0.56. The FIF in MSCI indices is the proportion of shares available for purchase in the public equity markets by international investors.

About 25 stocks will be added and 7 stocks will be deleted from the MSCI India Small-cap index. Changes have been made in MSCI INDIA DOMESTIC INDEX, about 8 stocks will be added and none of the stocks has been deleted.

Stocks like BHARTIARTL, Coal India, and Mphasis will also see an increase in their weightage. However stock like MARUTI, LTIMindtree, Ambuja Cements, Adani Enterprises, Yes Bank, and SRF will see a reduction. Dixon Tech, Idea, Oil India, Zydus Lifesciences, RVNL, Prestige Estates Project, and Oracle Fin Services will be added to the MSCI Emerging Markets index. Dixon Technologies is expected to receive the highest inflows, followed by Vodafone Idea shares.

Last year in February, when the Hindenburg released its report putting allegations on Adani group of fraudulent activities, MSCI halted certain adjustments to Adani Group securities due to concerns about the free float status of group stocks. In its August Index Review, MSCI has lifted restrictions despite recent follow up allegation on the Adani Group and resumed updates to their free float status and other metrics.