MSCI Set to Adjust India Standard Index in May
MSCI, the global index provider, is preparing to make changes to its India Standard Index in May, with the adjustments set to take effect on June 3, 2025. According to JM Financial Institutional Securities, the upcoming rebalancing could see the inclusion of three stocks: FSN E-Commerce Ventures, Adani Energy Solutions, and Coromandel International.
Highlights:
MSCI to unveil changes to the India Standard Index on May 13.
The changes will take effect on June 3, 2025.
FSN E-Commerce Ventures, Adani Energy Solutions, and Coromandel International are set to be added.
Nykaa Parent FSN E-Commerce Ventures Likely to Join MSCI India Standard Index
FSN E-Commerce Ventures Ltd., the parent company of Nykaa, is one of the stocks with a high probability of being added to the MSCI India Standard Index. The addition of FSN E-Commerce Ventures could lead to passive inflows of approximately $210 million into the stock.
Highlights:
FSN E-Commerce Ventures has a high chance of joining the MSCI India Standard Index.
The inclusion could result in passive inflows of $210 million.
Adani Energy Solutions and Coromandel International’s Inclusion Possibility
While FSN E-Commerce Ventures appears likely to join the index, the chances of Adani Energy Solutions Ltd. and Coromandel International Ltd. being added are considered lower, according to JM Financial. Nevertheless, both companies are still in contention for inclusion in the June rebalancing.
Highlights:
Adani Energy Solutions and Coromandel International are less likely to be included.
Their inclusion could bring substantial passive inflows, though with lower probabilities.
Thermax Likely to Be Excluded from MSCI India Standard Index
In contrast, Thermax Ltd. is expected to be excluded from the MSCI India Standard Index. The company’s stock has seen a sharp decline of nearly 25% over the past year, with much of the loss occurring in the last six months. The exclusion of Thermax is expected to trigger outflows of around $120 million.
Highlights:
Thermax is likely to be excluded from the MSCI India Standard Index.
The exclusion is set to lead to outflows of $120 million.
Total Passive Inflows from the Upcoming Rebalancing
The adjustments to the MSCI India Standard Index are expected to result in a total inflow of approximately $680 million based on the current prices of the stocks involved. Adani Energy Solutions is projected to receive the most significant inflows, bringing in around $270 million, followed by FSN E-Commerce Ventures with $210 million, and Coromandel International with $200 million.
Highlights:
Total passive inflows from the upcoming index adjustments are expected to be around $680 million.
Adani Energy Solutions is projected to receive $270 million in inflows.
Comparison with Previous MSCI India Standard Index Rebalancing
During the previous MSCI rebalancing, which took place in February 2025, Indian equities saw an influx of around $1 billion in passive inflows. Notable stocks that joined the top 10 positions in the MSCI Standard Index included IndusInd Bank, Zomato, Varun Beverages, Mankind Pharma, Torrent Pharmaceuticals, Dixon Technologies, PB Fintech, Adani Enterprises, and Voltas, among others.
Highlights:
The previous rebalancing saw $1 billion in passive inflows to Indian equities.
Stocks like IndusInd Bank, Zomato, and Varun Beverages saw major weight increases.
Top Weightage Stocks in MSCI India Standard Index Post February Rebalancing
After the February 2025 rebalancing, HDFC Bank holds the highest weightage among Indian stocks in the MSCI indexes, followed by Reliance Industries, ICICI Bank, Infosys, and Bharti Airtel.
Highlights:
HDFC Bank now has the highest weightage in MSCI India indexes.
Reliance Industries, ICICI Bank, Infosys, and Bharti Airtel are among the top stocks.
