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Stock Market

Stock Market

What is MSCI Index?

16 Nov 2023 Zinkpot 279
  1. MSCI, which stands for Morgan Stanley Capital International, is a leading provider of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools. 
  2. MSCI is perhaps best known for its stock indexes, which focus on different geographic areas and stock types such as small-caps, mid-caps, and large-caps. 
  3. MSCI indexes are widely used by investors, portfolio managers, and financial professionals to benchmark the performance of investment portfolios.
  4. The MSCI Index series includes a variety of indexes that cover different market segments, regions, and asset classes. Some of the most well-known MSCI indexes include:
    • MSCI World Index: Represents global equity markets, including developed and emerging markets.
    • MSCI EAFE Index: Focuses on developed markets in Europe, Australasia, and the Far East.
    • MSCI Emerging Markets Index: Covers emerging market economies.
    • MSCI USA Index: Represents the U.S. equity market.
    • MSCI All Country World Index (ACWI): Encompasses both developed and emerging markets.
  5. What is the MSCI Index India? The MSCI Index India is used to evaluate the performance of large and mid-cap segments of the Indian market. With 122 constituents, around 85 percent of the Indian equity universe is covered by the MSCI Index India.
  6. These indexes are used by investors for various purposes, such as performance benchmarking, asset allocation, and the creation of investment products like exchange-traded funds (ETFs) and index funds. The performance of these indexes is often cited in financial news to gauge the overall health and trends in global and regional markets.
  7. The Morgan Stanley Capital International (MSCI) indices are widely tracked by passive funds and any inclusion of stocks or increase in weightage of stocks in these global indices are expected to lead to inflows from passive funds tracking these indexes.
  8. Recently, in a recast by MSCI, IndusInd Bank, One97 Communications, Tata Motors ‘A’ (Tata Motors DVR), and Suzlon Energy shares are among 9 stocks that have been included in the MSCI Global Standard Index.
     

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