Eight new Indian companies added to FTSE Emerging Index
19 March 2013
News, Asia, Global
By ETFI Asia
Index provider FTSE Group announced the results of the FTSE Emerging Index annual review on Friday (March 15). The index includes large and mid cap securities from advanced and secondary emerging markets, classified in accordance with FTSE’s transparent country classification review process.
New constituents to join the index include eight Indian companies: Glaxosmithkline Consumer Healthcare, Godrej Consumer Products, Indusind Bank, NMDC, Shree Cement, United Breweries, Wockhardt and Yes Bank. The index contains 113 existing Indian constituents, which accounts for around 8.6% of emerging markets’ capitalisation.
The FTSE Emerging Index is reviewed annually by the independent FTSE index advisory committees. The committee is made up of leading local and international market professionals who approve all index changes and ensure that the index review complies fully with a set of highly transparent and publicly available index rules.
The FTSE Emerging Index is widely regarded as a leading measure of performance for emerging markets by global investors. In October 2012, Vanguard announced it had selected FTSE as the index benchmark provider for six international stock index funds including its Emerging Markets Stock Index Fund, the world’s largest emerging markets fund. This represented the largest ever international index provider benchmark switch.
Rohtas Handa, managing director, India commented: “Given the wide usage of the FTSE indices, like index-linked products and ETFs, index rebalance would have huge impact on the equity market, especially in the emerging markets in terms of capital flows. FTSE announces the review results prior to the rebalance effective date to ensure the market understand the index turnover and minimise the impact.”
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