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MSCI India Index May rejig may see net inflow of $200 million; 12 stocks added to Smallcap Index – Market News

Posted on 15 May 2025 by financepro


The inclusion of Coromandel International and FSN E-commerce Ventures, which is better known as Nykaa in the MSCI India Index is expected to trigger FII inflows of nearly $200 million. This is according to estimates from Nuvama Alternative & Quantitative Research, India.

The rejig will take place after the closing of trade on May 30, 2025, during the final 30 minutes of trade. The MSCI India Index is a part of the MSCI Global Standard Index.

MSCI India Domestic Smallcap Index

Further, in the MSCI India Domestic Smallcap Index, 12 stocks have been added, while 21 stocks have been dropped.

ACME Solar Holdings, AWL Agri Business, Authum Investment, Godrej Agrovet, Dr. Agarwal’s Health Care, Hexaware Technologies, Le Travenues Technology, International Gemmological Institute India, Sagility India, Premier Energies, Sai Life Sciences, and Sona BLW Precision Forgings have been included in the MSCI India Domestic Smallcap Index.

Aarti Drugs, Allcargo Logistics, Patel Engineering, Godrej Industries, Orchid Pharma, and Prince Pipes Fittings are among the 21 stocks that have been excluded from the index.

Coromandel International may see $252 million inflow: Nuvama

Upon inclusion in the MSCI Global Standard Index, Coromandel International is likely to see passive inflows worth $252 million. On the other hand, Nykaa is estimated to witness inflows of around $199 million, according to Nuvama Alternative & Quantitative Research.

On Wednesday, it was announced that the index will be rebalanced for the month of May. With the latest changes, the stock count will rise from 157 to 159. 

In the MSCI EM Index, India continues to hold its position as the second-largest country weight. It maintains a weight close to 19.5% in the index.  

Paytm not included

However, One97 Communications, the parent firm of Paytm, missed out, failing to meet the qualification criteria on the third day, which happened to be the cut-off this time around.

The broker believes that despite missing the cut-off, the fintech stock will remain on the radar of hedge funds, especially with an eye toward the August 2025 review. 


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