Four companies will be added to the MSCI Global Standard Index, drawing an estimated $1 billion in combined passive inflows.
Sona BLW and Thermax will be dropped, while float-adjusted weight cuts will come into effect for Eternal, Asian Paints, Jindal Steel & Power and Havells India, which will trigger sizable outflows.
Despite the inflows from new inclusions, Nuvama projects overall net passive outflows of $250–270 million for India when changes take effect on August 26.
The August 2025 rejig of the MSCI global indices saw the addition of four fresh Indian names into its Global Standard Index, with Swiggy, Vishal Mega Mart, Waaree Energies and Hitachi Energy India set to join the benchmark. The changes, announced on August 8, will take effect at the close of trading on 26 August.
According to IIFL Alternate Desk estimates, Swiggy’s inclusion could draw passive inflows of around $289 million, while Vishal Mega Mart is expected to see $258 million. Waaree Energies and Hitachi Energy India may each attract inflows of $233 million and $230 million, respectively.
At the other end, Sona BLW Precision Forgings and Thermax will be dropped from the index, potentially triggering outflows of $163 million and $121 million. The review also adjusts weightage, with CG Power and Industrial Solutions gaining in float-adjusted weight, bringing in an expected $56 million boost while Asian Paints, Eternal, Jindal Steel & Power, and Havells India see their weight reduced. These downward float adjustments could result in substantial outflows, with Eternal facing the largest at $571 million, followed by Asian Paints ($102 million), Jindal Steel & Power ($43 million), and Havells India ($40 million), estimates by Nuvama Alternative and Quantitative Research showed.
In the small-cap segment, 15 Indian stocks will be added and six removed from MSCI Smallcap index. Inclusions range from Belrise Industries and Brainbees Solutions to Nexus Select Trust and Zinka Logistics Solutions. Sona BLW and Thermax, while exiting the Global Standard index, will enter the small-cap index, where they are forecasted to receive inflows of $40 million and $30 million, respectively. Other major inclusions like Nexus Select Trust could see $25 million in inflows, while the remaining names are projected to receive between $4 million and $14 million.
Among the deletions from the small-cap basket are Bharat Dynamics, Easy Trip Planners, Hikal, Jain Irrigation Systems, MSTC, and Protean e-Gov Technologies. Bharat Dynamics is expected to take the largest hit, with estimated outflows of $31 million.
Nuvama Alternative & Quantitative Research noted that in India, the rejig will see four additions and two exclusions in the standard index, along with one stock’s weight increasing and four declining due to float adjustments. Based on its calculations, Nuvama estimates a net outflow of $250–270 million for India from this review.
With the MSCI changes closely watched by passive funds and institutional investors, the August adjustments are likely to spark activity in the affected counters in the run-up to the adjustment date.
