The MSCI India Index is poised for its August 2025 rejig, and early predictions suggest potential inclusions that could spark significant market activity. While the official announcement is scheduled for August 7, 2025, with changes effective from August 27, 2025, speculation is rife regarding which stocks might make the cut. Among the frontrunners are Swiggy, Mazagon Dock Shipbuilders, and Waaree Energies.

Potential Inclusions and Their Implications

• Swiggy: The online food delivery platform has become a household name in India, and its potential inclusion in the MSCI India Index reflects the growing importance of the tech and consumer internet sectors in the Indian economy. However, it's worth noting that Swiggy, which listed on November 13, 2024, is currently trading below its issue price.
• Mazagon Dock Shipbuilders: This defense sector company has witnessed increased investor interest due to the government's focus on indigenizing defense production. Its inclusion could further boost its visibility and attract greater investment.
• Waaree Energies: As a prominent player in the renewable energy sector, Waaree Energies aligns with the increasing emphasis on sustainable energy solutions. Its inclusion could signal confidence in the growth prospects of the renewable energy industry.

MSCI Index Rejigs: A Broader Perspective

MSCI index reviews occur regularly, with announcements and effective dates scheduled well in advance. These reviews involve adding and deleting stocks from various indexes, including the MSCI India Index and the MSCI India Domestic Small Cap Index. The changes are based on factors such as market capitalization, free float, and other criteria.

The August 2025 review is particularly significant because changes in constituents can lead to substantial inflows or outflows of funds as passive investment funds realign their portfolios to mirror the updated indexes.

Recent Index Activity

In May 2025, MSCI added FSN E-Commerce Ventures (Nykaa) and Coromandel International to its MSCI Global Standard index. At the same time, it excluded Sona BLW Precision from the same index. Several changes also occurred in the MSCI India Domestic Small Cap Index, with new additions and deletions impacting various stocks.

Other Possible Changes

While the inclusion of Swiggy, Mazagon Dock, and Waaree Energies is anticipated, other stocks may also be considered for inclusion or exclusion. For example, there was speculation in April 2025 that Nykaa, Adani Energy Solutions, and Coromandel International could be included, while Thermax might exit. In February 2025, Hyundai Motor India was added to the index, while Adani Green Energy was excluded.

Impact on India's Weightage

India's weightage on the MSCI Global Standard index has been steadily increasing, reaching a record high in recent times. This rise is expected to attract significant inflows into the Indian equity markets. As of August 2024, India's weight was projected to rise to 19.8%, narrowing the gap with China.

Important Considerations

It's important to remember that inclusion in an MSCI index is not a recommendation to buy, sell, or hold a particular stock. Investors should conduct their own research and consult with financial advisors before making any investment decisions.

MSCI also clarifies that constituents in MSCI equity indexes may include MSCI Inc., clients of MSCI or suppliers to MSCI. Inclusion of a security within an MSCI index is not a recommendation by MSCI to buy, sell, or hold such security, nor is it considered to be investment advice.