The upcoming August rebalancing of the MSCI India Standard Index is generating buzz in the stock market, with several companies expected to be added and potentially witness significant fund inflows. Among the likely additions are Swiggy, Mazagon Dock Shipbuilders, and two other companies, as per recent market reports.
Swiggy, the online food delivery platform, is anticipated to receive substantial inflows, estimated at $385 million, upon its inclusion in the MSCI India Standard Index. This reflects the company's growing prominence in the Indian market and the increasing investor interest in the online delivery segment. Mazagon Dock Shipbuilders, a defense sector company, could also see inflows of approximately $187 million, further highlighting the positive sentiment surrounding the stock.
The MSCI India Standard Index is a benchmark index that reflects the performance of large and mid-cap companies in the Indian equity market. It is widely tracked by domestic and international investors, and inclusion in the index can lead to increased visibility, liquidity, and ultimately, higher stock valuations for the constituent companies. The rebalancing exercise, which occurs periodically, involves reviewing and adjusting the constituents of the index to accurately represent the evolving Indian equity landscape.
The August 2024 rebalancing, for example, saw seven stocks being added to the MSCI Global Standard Index, with Dixon Technologies expected to draw the highest passive inflows, estimated at $257 million. Vodafone Idea followed closely with anticipated inflows of $254 million. In contrast, one stock was excluded during that rebalancing. Also during the August 2024 rebalancing, Morgan Stanley Capital International (MSCI) announced plans to increase the weight of HDFC Bank in the index, a change that was executed in two tranches.
In May 2025, Nykaa and Coromandel International were included in the MSCI India Index, part of the MSCI Global Standard Index. There were no deletions during that period. Coromandel International was expected to receive passive inflows of approximately $252 million, while Nykaa was anticipated to attract inflows of around $199 million.
Conversely, the MSCI February 2025 Index review saw Hyundai India being added to the MSCI India Standard Index, while Adani Green Energy was removed. These changes took effect on February 29, 2025, impacting institutional fund flows and market positioning.
The inclusion of companies in the MSCI India Standard Index typically leads to significant passive inflows, as funds that track the index are required to purchase shares of the new constituents to align their portfolios with the index composition. This increased demand often results in a positive impact on the stock prices of the included companies.
The announcement of the changes to the MSCI India Standard Index is usually made a few days prior to the effective date, giving investors time to adjust their portfolios accordingly. The rebalancing is implemented as of the close of trading on the last day of August.
While the potential inclusions of Swiggy and Mazagon Dock Shipbuilders have generated considerable interest, the names of the other two companies likely to be added to the MSCI India Standard Index in the August rebalancing are still awaited. Market participants will be closely monitoring the official announcement from MSCI to confirm the final list of additions and deletions.
