Global index provider MSCI has unveiled significant changes to its India Domestic index, with several prominent companies either gaining inclusion or facing exclusion. Adani Energy Solutions Ltd, Federal Bank Ltd, Hitachi Energy India Ltd, MCX, and National Aluminium Company Ltd (Nalco) are the five new additions to the index.
Major Exclusions from MSCI India Index
Conversely, four major stocks have been removed from the MSCI India list. These include Hyundai Motor India Ltd, Kalyan Jewellers India Ltd, Rail Vikas Nigam Ltd (RVNL), and SBI Cards and Payment Services Ltd. These adjustments are set to take effect as of the close of May 29, 2026.
Despite these individual stock movements, India’s overall weight in the MSCI Standard Index will remain largely stable at 12.3 per cent, a slight dip from 12.4 per cent. The total number of companies represented in the index will also hold steady at 165.
Impact on Small Cap Index
Beyond the primary index, MSCI has also implemented changes to its float calculation methodology, leading to various weight adjustments across different stocks. The Small Cap Index, in particular, will see substantial revisions. The global index provider announced the addition of 16 stocks and the exclusion of 30 stocks from its India Domestic Small Cap index.
According to a note from Nuvama, the small-cap universe has been under pressure, resulting in over a dozen exclusions in India. This will reduce the stock count in the Small Cap index from 474 to 459 post-rejig. Notable additions to the Small Cap index include Indian Renewable Energy Development Agency (IREDA), PhysicsWallah, L&T Technology Services Ltd, Procter & Gamble India, Jain Resource Recycling, Aditya Infotech, Kalyan Jewellers, Gujarat Fluro, and Anupam Rasayan.
Among the small-cap stocks facing exclusion are Bajaj Electricals, Nalco (though added to the main index, it's out of small cap), Texmaco Rail, Federal Bank (also added to main index, out of small cap), Raymond Lifestyle, Indigo Paints, L&T Finance, NIIT Learning Systems, and Shree Renuka. Investors and market participants will be closely watching the market's reaction to these comprehensive MSCI India rejig changes.