MSCI Announces Changes to India Indices: Key Stocks to Watch

In a significant update, MSCI, the renowned global index provider, has unveiled its latest adjustments to India-related indices as part of the May 2025 review. Notable additions include Coromandel International and FSN E-Commerce Ventures, the parent company of Nykaa, both of which will join the MSCI India Index—a key component of the MSCI Global Standard Index family. This strategic move is set to officially take effect at the end of trading on May 30, 2025.

No Exits, Just Fresh Faces

This reshuffle is particularly interesting because, unlike previous revisions, no companies are being removed from the MSCI India Index. This balanced approach ensures stability while integrating new players into the mix.

Paytm Remains on the Sidelines

Despite speculation surrounding the potential return of One97 Communications, the operator of Paytm, following its previous exclusion in May 2024, MSCI has decided not to reinstate the stock in its latest lineup. Investors will need to remain patient and vigilant regarding Paytm’s future index inclusion.

Updates in the India Domestic Index

Beyond the Global Standard Index, MSCI has also refreshed its India Domestic Index. This update includes the addition of GMR Airports Infrastructure alongside Coromandel International. In contrast, Sona BLW Precision Forgings, a significant player in the auto components sector, has been removed from the Domestic Index but has secured a position in the MSCI India Domestic Smallcap Index.

Smallcap Index Changes: 12 New Additions, 21 Exits

The MSCI India Domestic Smallcap Index has experienced notable activity. A total of 12 companies are making their debut, including Hexaware Technologies, Godrej Agrovet, and Le Travenues Technology, which is the parent company of Ixigo. However, this update also sees 21 stocks exiting the index, with prominent names such as Aarti Drugs, Orchid Pharma, and Prince Pipes and Fittings among those removed.

These adjustments will also come into effect after market close on May 30.

Weightage Adjustments: Who’s Gaining and Who’s Losing?

Several heavyweight stocks are experiencing changes in their weightage within the MSCI Standard Index. Companies like Cipla, Indus Towers, and UltraTech Cement will benefit from increased weightage, potentially attracting fresh investments of up to $50 million.

Conversely, giants like HDFC Bank, ICICI Bank, Infosys, and Bharti Airtel will see a reduction in their weightage, likely leading to minor outflows.

As the market prepares for these changes, investors should keep a close eye on how these adjustments impact their portfolios and the broader market dynamics in the upcoming months.