With end to MSCI overhang in sight, Airtel stock reclaims ₹600 mark

MUMBAI: Shares of telecom operator Bharti Airtel were under pressure last year after MSCI Emerging Market Index reduced its weightage by 15 basis points in August. One basis point is one hundredeth of a percentage point.

On Thursday, MSCI said Bharti Airtel will be a part of its February 2021 quarterly index review. This means that weight of the stock may increase significantly in the index, attracting foreign investors.

Responding to the development, Bharti Airtel shares rose more than 4% on the NSE on Friday to ₹603.90. With that, the stock is at a kissing distance from its 52-week high of ₹612 seen in May last year.

To put things into perspective, MSCI’s weightage review in August was based on available public data which said foreign ownership through automatic route for Bharti Airtel is 49% and will remain so until the company complies with the conditions.