The past few weeks have been tumultous for Indian stocks, shaken up by the allegations of fraud against Adani Group and a crash in the value of its shares. At one point the India had also slipped out of the list of the world's five leading stock markets, before bouncing back as the fiasco spooked investors. But a move by the Financial Times Stock Exchange to include Patanjali, Kotak Mahindra Bank and IDBI Bank in its All World edition, has lifted the value of the stocks.
The FTSE All World index is a global version of FTSE 100, which tracks 100 firms listed on the London Stock Exchange. The three stocks were part of 10 added to the global large cap index, along with ACC, Canara Bank, YES Bank, Union Bank of India, Indian Hotels, Jindal Steel, and Shriram FInance.
Being included in the global index which tracks stocks from emerging and developed markets, gives these firms exposure to foreign investors. Appeal of these equities will facilitate inflow of funds from FIIs into Indian stock markets.
They were followed by APL Apollo Tubes, Indian Bank, Solar India, Supreme India and Vedant Fashion, which were upgraded from small cap to mid cap stocks. Others including Cera Sanitaryware, Allcargo, Go Fashion, JK Paper and Kalyan Jewellers, have been added to the global small cap index by FTSE. After posting a 1000 per cent jump in profits, IndiGo parent Interglobe Aviation has seen its weightage on the FTSE index go up from 27.80 per cent to 31.85 per cent.
