Nykaa, Paytm Among Top Contenders for Inclusion During MSCI’s May Rejig

FSN E-Commerce Ventures, Coromandel International and One97 Communications are the top contenders for getting included in the MSCI India Standard Index, during its semi-annual re-balancing in May. According to JM Financial, the expected changes could lead to an increased fund flows into certain stocks. The official announcement for MSCI index rejig is scheduled for May 14.

FSN E-Commerce, the parent company of fashion retailer Nykaa, has a high probability of inclusion in the index. This could result in expected inflows of $210mn, the brokerage had said. Shares of the company have risen over 10% in one month. The stock has climbed over 21% in 2025 so far.

Apart from Nykaa, Coromandel International and One97 Communications are also in the race for inclusion. Shares of Coromandel might attract $200mn of inflows, JM Financial had estimated. The stock today touched its all time high mark at Rs 2,498 on the National Stock Exchange. Shares of the agricultural solutions provider have gained nearly 30% year-to-date, while 19% in one month. Shares of One97 Communications, parent company of Paytm, fell over 16% year-to-date. Paytm was removed from the India index in May last year.

The MSCI rejig is a key monitorable as large global investment funds, such as most exchange-traded funds, track the MSCI indices closely and any movement in the index, is mirrored in their holdings. This results in large amounts of buying or selling of the stocks, which might shift the share prices significantly.

May-reshuffle will also lead to an expected inclusion of several other stocks, including Tata Technologies, Premier Energies, Acme Solar Holdings, and Hexaware Technologies, among others, according to a CNBC TV-18 report. According to Nuvama Alternative & Quantitative Research, projected inflows per stock could range from $3mn to $14mn, the report further said. Tata Technologies will likely receive $14mn in passive inflows and Hexaware Technologies and Premier Energies will likely attract $13mn each.

Alongside inclusions, the rejig will also see some exclusions and probable victims for this are Thermax and Sona BLW. Thermax has lost nearly 18% this year so far. It fell to its 52-week low mark in February this year. An estimated inflow of over $660mn is expected across Coromandel, Nykaa, and Paytm, while an outflow of around $120mn is anticipated for Thermax due to the rejig, reports suggested.