The latest MSCI Rejig has triggered a structural shift in India’s global index positioning.
Whenever MSCI reshuffles its benchmarks, it quietly moves global capital. This is not sentiment. This is structure. The MSCI Rejig February 2026 review brings inclusion, exclusion, and weight changes that will alter passive fund allocation at the end of this month.
Here’s a clear breakdown of what changed, what it means, and the numbers that matter.
Market Performance: India’s Position After MSCI Rejig
The February MSCI Rejig keeps India’s overall standing steady but adjusts internal allocations.
Key highlights:
- Indian companies in MSCI Global Standard Index: 164 → 165
- India’s weight in MSCI Standard Index: 14.1% (unchanged)
- Effective date: Post market close, February 27, 2026
So while India’s overall weight remains 14.1%, the composition within the index changes. That’s where money shifts.
Main News: Who Moves In and Who Moves Out in MSCI Rejig?
The headline of this MSCI Rejig is simple.
Added to MSCI Global Standard Index
Removed from MSCI Global Standard Index
This change increases the number of Indian stocks in the Global Standard Index to 165.
Index inclusion means passive funds tracking MSCI will rebalance. Exclusion means the opposite.
It’s mechanical. It’s rules-based. And it happens every quarter.
Passive Flows After MSCI Rejig
Index adjustments bring capital movement. Not estimates from sentiment — but rebalancing based on index weight.
Expected passive flow impact:
- Aditya Birla Capital – Around $257 million inflows
- L&T Finance – Around $238 million inflows
- IRCTC – Around $142 million outflows
- AU Small Finance Bank – Around $172 million inflows (due to weight increase)
These movements are linked directly to the MSCI Rejig February 2026 changes.
When global funds track the index, they replicate weight changes. That’s how passive investing works.
Company Details: What This MSCI Rejig Changes Structurally?
Aditya Birla Capital – Now Part of MSCI Global Standard Index
With inclusion under the MSCI Rejig, Aditya Birla Capital enters a global benchmark followed by large institutional funds.
That alone increases global visibility and passive allocation tracking the index.
Nothing speculative. It’s structural participation.
L&T Finance – Included in MSCI Global Standard Index
L&T Finance becomes another addition in the February MSCI Rejig.
Its inclusion shifts allocation under the financial services segment within the MSCI Global Standard Index.
Rebalancing will take place as of February 27, 2026.
IRCTC – Excluded from the Index
IRCTC exits the MSCI Global Standard Index in this MSCI Rejig.
With removal, index-linked funds are required to reduce holdings in line with the exclusion.
The change is rule-based. It reflects MSCI’s review methodology.
AU Small Finance Bank – Weight Increased
Beyond inclusions and exclusions, the MSCI Rejig also includes a float adjustment.
- AU Small Finance Bank’s weight increases.
- Estimated inflows: $172 million
Float adjustments can shift millions in passive capital. This is one such case.
MSCI Smallcap Index Review: Bigger Shuffle Here
The February MSCI Rejig also reshaped the MSCI Smallcap Index.
Smallcap Numbers After Review
- Indian stocks earlier: 508
- Indian stocks now: 480
- Total reduction: 28 stocks
The smallcap segment saw 7 additions and 34 deletions.
Stocks Added to MSCI Smallcap Index
- Ashapura Minechem
- Canara HSBC Life Insurance
- Emcure Pharmaceuticals
- JSW Cement
- National Securities Depository Ltd (NSDL)
- Premier Energies
- Thyrocare Technologies
Stocks Removed from MSCI Smallcap Index (Select List)
- Ashoka Buildcon
- Anup Engineering
- Chemplast Sanmar
- Dilip Buildcon
- Gokaldas Exports
- JK Lakshmi Cement
- Just Dial
- Kaveri Seed Company
- KNR Constructions
- L&T Finance
- Puravankara
- Shoppers Stop
- Sterlite Technologies
- VRL Logistics
- Websol Energy Systems
- Zaggle Prepaid Ocean Services
And others as part of the broader reshuffle.
This pulls the Indian smallcap count down to 480 companies.
Implementation Timeline of MSCI Rejig
All changes under the MSCI Rejig February 2026 review will take effect:
As of the close of February 27, 2026
That is when passive funds tracking MSCI indices will align portfolios.
Until then, markets prepare. After that, capital moves.
Why MSCI Rejig Matters in Global Flows?
The MSCI Rejig is not about prediction. It is about allocation.
It determines:
- Which Indian companies get global benchmark exposure
- How much passive fund weight they carry
- Where capital shifts after rebalancing
India’s weight remains steady at 14.1%, but internal stock composition changes.
This February 2026 MSCI Rejig shows:
- 2 major additions in Global Standard Index
- 1 exclusion
- 1 weight increase
- 28 net reduction in Smallcap Index
These are not minor tweaks. They reflect benchmark recalibration.
Summary: MSCI Rejig February 2026 in One View
Let’s summarise the key numbers from this MSCI Rejig:
- Indian companies in MSCI Global Standard Index: 164 → 165
- India’s weight: 14.1%
- Effective date: February 27, 2026
- Aditya Birla Capital inflows: ~$257 million
- L&T Finance inflows: ~$238 million
- IRCTC outflows: ~$142 million
- AU Small Finance Bank inflows: ~$172 million
- MSCI Smallcap Index count: 508 → 480
The MSCI Rejig February 2026 is a structural realignment.
Inclusion brings visibility.
Exclusion changes fund positioning.
Weight adjustments move capital.
That’s how global indices operate.
And that’s why every MSCI Rejig quietly shapes India’s market participation on the world stage.
Source: Livemint
Easy & quick
Leave A Comment?