May 15 (Reuters) - Index provider MSCI ( MSCI ) will

count U.S. bitcoin investor MicroStrategy ( MSTR ) among 42 additions to

its widely tracked world index while more firms from India join

its emerging markets index, following a quarterly review.

They are closely watched as billions of dollars invested in

exchange-traded funds track MSCI ( MSCI ) indexes and they are used as a

performance benchmark for fund managers.

In total, there are 42 securities to be added and 121 cut

from the all-country world index.

The three largest additions will be U.S. companies: software

firm and bitcoin investor MicroStrategy ( MSTR ), data storage

company Pure Storage ( PSTG ) and mechanical and electrical

construction firm Emcor ( EME ).

"All represent the direction of new economy development,"

said Kenny Ng, a strategist at China Everbright Securities

International in Hong Kong.

MSCI ( MSCI ) reviews its indexes to reflect moves in market value of

constituents, among other factors. The changes, which will take

effect at market close on May 31, usually drive a spike in

turnover.

Traders are alert this time for possible disruption as the

rebalance falls only a few days after the U.S. shortens its

stock-trading settlement cycle from two days to one on May 28.

Elsewhere, India's Canara Bank, Indonesian

chemical firm Chandra Asri Pacific and Indian power

generator JSW Energy will be the three largest

additions to the MSCI ( MSCI ) emerging markets index.

The three largest additions to the frontier markets index

will be Kazakhstan carrier Air Astana, Croatia's

electrical-equipment maker Koncar Distributivni I and

Romanian telco Digi Communications.

New York-based MSCI ( MSCI ) said it will add six and delete 70

securities from the China A Onshore Index. The three largest

additions will be steel manufacturer CITIC Pacific Special Steel

, energy firm CNOOC and forklift

manufacturer Hangcha Group.

The company said foreign listings will become eligible for

the MSCI Sweden Indexes starting from the November quarterly

index review as the market has met the foreign listing

materiality requirements.

MSCI ( MSCI ) will also resume review of Egyptian and Kenyan

securities after hearing from market participants that liquidity

and foreign exchange access had improved there.

Special treatment for equities listed in Bangladesh in the

MSCI ( MSCI ) indexes will remain due to accessibility issues, MSCI ( MSCI ) said.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by

Shounak Dasgupta, Shailesh Kuber and Subhranshu Sahu)