MSCI Rejig: Key Changes to MSCI India Index and Smallcap Index

In the latest MSCI rebalancing for May 2025, significant changes have been announced to the MSCI India Index and the MSCI India Domestic Smallcap Index. The new rebalancing will take effect as of the close of trade on May 30, 2025.

Main News: Nykaa and Coromandel Join MSCI Global Standard Index

Two major companies, Coromandel International and FSN E-Commerce Ventures (the parent company of Nykaa), are being added to the prestigious MSCI Global Standard Index.

• Coromandel International is expected to receive a passive inflow of $252 million.
• Nykaa is projected to see passive inflows of $199 million.

These changes are expected to bring significant market attention and impact, with passive investments directed towards these companies due to their inclusion in the index.

MSCI India Domestic Smallcap Index: 12 Additions, 21 Deletions

In addition to the changes in the Global Standard Index, there have been significant updates to the MSCI India Domestic Smallcap Index. Here's a summary of the new additions and deletions:

Additions:

• Acme Solar Holdings
• Authum Investment
• AWL Agri Business
• Dr. Agarwal's Health Care
• Godrej Agrovet
• Hexaware Technologies
• International Gemmological Institute India
• Le Travenues Technology
• Premier Energies
• Sagility India
• Sai Life Sciences
• Sona BLW Precision Forgings

Deletions:

• Aarti Drugs
• Allcargo Logistics
• Godrej Industries
• Patel Engineering
• Prince Pipes and Fittings
• Orchid Pharma

These additions and deletions will reshape the smallcap index, further influencing stock movements and market dynamics.

Impact of Changes

With the inclusion of Coromandel International and Nykaa, both companies are expected to experience significant passive inflows. Investors tracking the MSCI Global Standard Index will likely adjust their portfolios accordingly, driving more investments toward these companies.

Company Details

1. Coromandel International: A leading player in the agrochemical sector, Coromandel's inclusion in the MSCI India Index strengthens its position in global markets.
2. Nykaa: As a prominent player in the e-commerce space for fashion and beauty products, Nykaa's addition to the MSCI Global Standard Index will likely enhance its global visibility and attract more institutional investors.

Summary

The May 2025 MSCI rebalancing marks a significant shift for Coromandel International and Nykaa, as their inclusion in the MSCI Global Standard Index positions them for strong passive inflows. Meanwhile, changes to the MSCI India Domestic Smallcap Index reflect shifts in the smallcap landscape, with 12 new stocks added and 21 removed. As these changes take effect on May 30, 2025, investors and market participants will be watching closely to see how these stocks perform after the rebalancing.