MSCI reduces Airtel’s weight in indices amid foreign holding limit confusion

Mumbai: Global index service provider MSCI has almost halved Bharti Airtel’s weightage on its Indian and MSCI indices from September 1, a move that could force foreign investors to cut exposure to the stock. Macquarie said in a sales note that the cut in weight was caused by a fall in free float to 23 per cent from 45 per cent following the change in foreign ownership limit from 74 per cent to 49 per cent. Shares of Bharti Airtel declined 2.25 per cent to Rs 535 on Thursday.

MSCI cut Bharti’s weight from 3.5 per cent to 1.8 per cent in the India index and from 0.285 per cent to 0.144 per cent in the Emerging Markets (EM) Index on Wednesday.