MSCI India index review could add up to 12 stocks, with $2.3 billion in passive flows

MSCI India Index Rejig May Trigger $2.3 Billion Passive Inflows

The upcoming MSCI India Standard Index rebalancing could bring significant changes to the index, with up to 12 stocks potentially being added and three companies facing exclusion. The review results are expected to be announced on August 12 after market hours, with changes likely to take effect from August 31, 2026.According to a JM Financial report, the rebalancing could attract passive inflows of nearly $2.3 billion into Indian equities as global funds tracking the index adjust their portfolios.MSCI Index Rebalancing: Know All About it Among the stocks showing a strong possibility of inclusion in the MSCI India Standard Index are Adani Green, Groww and Adani Energy Solutions. Groww is expected to attract the highest passive inflows among the possible additions, estimated at around $821 million. Adani Green could see inflows of nearly $773 million, while Adani Energy Solutions may receive around $342 million.Ather Energy has been classified as a medium-probability candidate, with its inclusion depending on further improvement in its free-float adjusted market capitalisation during the observation period. Sensex Crashes 1,092 Points From Day’s High, Nifty Ends Below 23,550 Amid FII Selling & MSCI Rebalancing PressureLenskart and Steel Authority of India (SAIL) are considered low-probability candidates for inclusion. If added, Lenskart and SAIL could attract estimated inflows of $176 million and $170 million, respectively.The review may also see certain companies move from the MSCI India Small Cap Index to the Standard Index. Laurus Labs and Biocon are considered high-probability candidates for migration, while Coforge has been identified as a medium-probability candidate. Glenmark Pharma and Uno Minda are classified as low-probability candidates.Among these potential migrations, Coforge could attract passive inflows of about $567 million, followed by Laurus Labs at $554 million. Glenmark Pharma, Biocon and Uno Minda may receive estimated inflows of $330 million, $285 million and $206 million, respectively.On the exclusion front, Astral has emerged as a high-probability candidate for removal from the MSCI India Standard Index. SBI Cards is considered a medium-probability exclusion candidate, while Balkrishna Industries falls under the low-probability category.If removed from the index, these stocks could witness passive outflows, with Balkrishna Industries facing an estimated $167 million outflow, followed by SBI Cards at $146 million and Astral at $138 million.The final changes will depend on market capitalisation trends and MSCI’s review parameters before the official announcement.

9 hours ago

MSCI India review may bring $2.3 billion inflows, add up to 12 stocks

Adani Green, Adani Energy Solutions and Groww are among the likely entrants, while Astral and SBI Cards face possible exclusion in MSCI's August index review

10 hours ago