In a significant move for the Indian market, Coromandel International Ltd. and FSN E-Commerce Ventures Ltd., the parent company of Nykaa, have been officially added to the MSCI Global Standard Index. This update comes as part of MSCI’s semi-annual review for May 2025, announced early Wednesday. The changes will take effect after the market closes on May 30, 2025, marking a notable milestone for both companies.
MSCI Inclusion and Expected Inflows
The inclusion of Coromandel and Nykaa in the MSCI index is expected to generate considerable passive investment inflows. According to IIFL Alternate Research, these additions could attract around $227 million for Coromandel and $181 million for Nykaa. This reflects a growing confidence in their market performance and potential for future growth.
- Coromandel International Ltd.: Estimated inflow of $227 million
- Nykaa: Anticipated inflow of $181 million
Other Key Index Updates
In addition to the MSCI Global Standard Index, there have been several changes in other MSCI indices:
-
MSCI India Domestic Index:
- Additions: Coromandel International Ltd. and GMR Airports Infrastructure Ltd.
- Removal: Sona BLW Precision Forgings Ltd.
-
MSCI India Large Cap Index: No changes made.
- MSCI India Mid Cap Index:
- Additions: Coromandel International Ltd. and FSN E-Commerce Ventures Ltd.
- No deletions.
Major Rebalancing in Small Cap Indices
The MSCI India Small Cap Index underwent a major rebalancing, resulting in 11 new additions, including notable names like Tata Technologies Ltd. and Hexaware Technologies Ltd. However, this index also saw the removal of 21 companies, such as:
- Coromandel International Ltd.
- Godrej Industries Ltd.
- Teamlease Services Ltd.
Additionally, the MSCI India Domestic Small Cap Index added 12 stocks while removing 21. New additions included:
- Acme Solar Holdings Ltd.
- Sai Life Sciences Ltd.
- Dr. Agarwal’s Health Care Ltd.
Conclusion
The inclusion of Coromandel International and Nykaa into significant MSCI indices showcases their strengthened positions within the market. As these changes take effect on May 30, investors and analysts will be watching closely to see how these additions impact market dynamics and investor sentiment moving forward. Keep an eye on these developments as they unfold.
