Shares of Glenmark Pharmaceuticals have surged by 12% to Rs 1,184, also their record high on the National Stock Exchange (NSE) in early morning trades, on inclusion in the MSCI Emerging Markets
Index from close of August 31, 2015.
“The three largest additions to the MSCI Emerging Markets
Index measured by full company market capitalization will be Hanmi Science Co (Korea), Glenmark Pharmaceuticals (India) and BGF Retail (Korea),” MSCI Inc., a leading provider of research-based indexes and analytics, said in its August 2015 Quarterly Index Review. The changes will be implemented as of close on August 31, 2015, it added.
The MSCI index is widely tracked by Indian stock watchers overseas, with several passive funds replicating their portfolios according to the corresponding weightages. These funds will have to buy or sell stocks accordingly.
Experts say passive funds usually buy into these stocks since they track the India-related MSCI indices to gauge overall sentiment. Traders, too, accumulate these from a short-term perspective.
At 09:27 AM, the stock was up 6.7% at Rs 1,131 on the NSE. A combined 992,010 shares changed hands on the counter on the NSE and BSE.