Stock market index provider FTSE Group has added Bosch and raised the shares of eight other Indian companies, including Yes Bank, to large-caps from mid-cap earlier in its Asia Pacific ex-Japan index.
FTSE's changes, which came after a semi-annual review of indices, may lead to net inflows of nearly $150 million in Indian shares and may help soothe worries about huge India overweight positions after a potential rise in the country's weighting by peer MSCI, traders said.
The government's budgetary proposal to make no distinction between foreign direct investment and foreign portfolio investment is expected to raise India's weight in MSCI indexes.
Companies often see demand for their shares rise or fall after promotion or exclusion from indices, primarily due to funds tracking the indices in question or using them as benchmarks, analysts say.
FTSE's move, which will be effective after market close on March 20, also includes Eicher Motors, Motherson Sumi Systems, Zee Entertainment Enterprises, Godrej Consumer Products, Aurobindo Pharma, Shree Cement and Cadila Healthcare.
In its review, FTSE also upgraded India's consumption related stocks such as Pidilite Industries, Britannia Industries and Marico to mid-cap series from small-cap earlier.
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