MSCI Index Shuffle: Nykaa, Coromandel Walk the Ramp, Paytm Misses the Steps

FSN E-Commerce Ventures, the parent company of Nykaa, and Coromandel International are the only two companies that made the cut for inclusion in the MSCI India Index, which is part of the MSCI Global Standard Index. Notably, there have been no deletions this time, the global index provider said. Another top pick by analysts—One97 Communications, the parent of Paytm—once again failed to re-enter the index during this rebalancing, which will come into effect after the May 30 market close.

The MSCI India Domestic Index saw two additions—Coromandel International and GMR Airports Infrastructure, the airport operator—while Sona BLW, an automobile components manufacturer, was deleted.

Coromandel International, part of the Murugappa group, is expected to see passive inflows worth $252 million upon inclusion in the Global Standard Index, while Nykaa is likely to receive inflows of around $199 million, according to Nuvama Alternative & Quantitative Research.

Beyond these changes, 22 companies will be excluded from the MSCI India Small Cap Index, with just 11 new additions. Stocks excluded include: Aarti Drugs, Allcargo Logistics, Coromandel International, E2e Networks, Electronics Mart India, Gateway Distriparks, Godrej Industries, Greenpanel Industries, Gujarat Alkalies & Chemicals, HeidelbergCement India, Hemisphere Properties, MosChip Technologies, NOCIL, Orchid Pharma, Orissa Minerals Development, Paisalo Digital, Patel Engineering, Prince Pipes and Fittings, Rossari Biotech, Share India Securities, Shyam Metalics & Energy, and TeamLease Services.

Meanwhile, the following companies were added to the small cap index: Acme Solar Holdings, Authum Investment, AWL Agri Business, Dr. Agarwal's Health Care, Godrej Agrovet, Hexaware Technologies (new), International Gemmologic, Le Travenues Technology, Sagility India, Sai Life Sciences, and Tata Technologies.

In addition to inclusions and exclusions, the index provider also announced that Vodafone Idea is likely to see an increase in its weightage on the MSCI Global Standard Index. The telecom provider was added to the index in August last year. Reports suggest Vodafone Idea shares could attract up to $16 million in inflows after the rejig becomes effective.

Along with Vodafone Idea, Cipla, UltraTech Cement, Grasim Industries, and Indus Towers will also see an increase in their respective weightage within the Standard Index.