MSCI India Index Update: Potential Rebalancing and Market Implications
The MSCI India Index is poised for a significant rebalancing in August, with potential additions that could lead to substantial inflows. As of June 18, 2025, the index closed at 2955.02, having experienced a 52-week high of 3167.29 on September 26, 2024, and a low of 2529.3 on April 6, 2025.
Potential Additions and Inflows
According to domestic brokerage JM Financial, four companies are likely candidates for inclusion in the MSCI India Standard Index during the August rebalancing. These companies are Swiggy Ltd, Mazagon Dock Shipbuilders Ltd, Hitachi Energy India Ltd, and Waaree Energies Ltd. The inclusion of these stocks is expected to attract inflows worth approximately $850 million.
Swiggy Ltd is considered the most probable addition, with an estimated inflow of $385 million. Despite a 33% decline in share price this year, Swiggy’s stock has seen an 11% increase over the past month. However, challenges such as a slowdown in customer acquisition and reduced order volumes remain concerns.
Mazagon Dock Shipbuilders Ltd and Hitachi Energy India Ltd have a medium probability of inclusion, with potential inflows of $187 million and $165 million, respectively.
Waaree Energies Ltd has a lower likelihood of being added but could still bring in $132 million if included.
The MSCI India Standard Index rebalancing announcement is scheduled for August 7, after market hours, with changes taking effect from August 27.
Dividend Declaration
In related news, the iShares MSCI India Small-Cap ETF declared a $0.00 dividend on June 17, 2025.
Market Context
The potential inclusion of these companies in the MSCI India Index highlights the dynamic nature of the Indian market and the significant impact of index rebalancing on capital flows. Investors and market participants are closely monitoring these developments as they could influence investment strategies and market performance in the coming months.