Energy solution provider HD Hyundai Electric will be added to the Morgan Stanley Capital International Korea Index, alongside two other domestic companies, according to the index operator Tuesday.

The MSCI Index is an influential market benchmark published by the US investment bank Morgan Stanley. Tracked by the global investment industry, the index measures the performance of the stocks included in its listing.

The shares of three Korean companies, including HD Hyundai Electric, biotechnology company Alteogen and electrolyte maker Enchem, made the listing for the MSCI Korea Index as part of May rebalancing.

The local market had viewed the three companies to make the listing in May, considering their recent market cap surge. Alteogen's market cap stands at 9.25 trillion won ($6.8 billion), HD Hyundai Electric at 9.24 trillion won and Enchem at 5.61 trillion won.

Samsung Securities projected the MSCI inclusion will lead to an inflow of combined 400 billion won for the three companies through a report published in April.

Under the projection, Alteogen would attract 180 billion won, while HD Hyundai Electric and Enchem would see an inflow of 140 billion won and 85 billion won, respectively. The inflow accounts for around 3 percent of each company’s floating market cap.

Yet, the index inclusion may not lead to a further sharp rise in stock prices, considering the expectations have already been reflected on the shares.

The US company also removed four companies: Kakao Pay, the online payment unit of tech giant Kakao Corp.; Samsung Securities; Hanon Systems, a heat pump systems maker for automobiles; and casino operator Kangwon Land, from the list.

Evaluation for MSCI inclusion is based on total and free-floating market capitalization. The index provider adjusts its listing four times a year: in February, May, August and November.

In the previous rebalancing in February, EcoPro Materials and Hanjin KAL were added to the index, while F&F, Hotel Shilla, JYP Entertainment, Pearl Abyss and Hyundai Mipo Dockyard were excluded.

The changes from May index adjustments will be reflected at the close of trading on May 31, effective from the June 3 trading session.

Altogether, 98 stocks, one less from the previous 99 stocks, will constitute the Korea index from next month.

The market views companies such as power solutions producer LS Electric and defense firm Hyundai Rotem to be newly added to the list in the upcoming August review.