After the rejig, the number of Indian companies in the MSCI Global Standard Index will increase from 164 to 165. | Photo credit: THOMAS WHITE
The changes, announced on Wednesday, will come into effect on February 27.
MSCI indexes serve as globally recognized benchmarks tracked by major passive funds, implying that inclusions typically attract new capital inflows, while deletions typically attract outflows.
After the rejig, the number of Indian companies in the MSCI Global Standard Index will rise from 164 to 165. However, India’s overall weight in the index will remain stable at 14.1 percent, said Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research.
Nuvama estimates that Aditya Birla Capital and L&T Finance could see passive inflows of around $257 million and $238 million, respectively. In contrast, IRCTC is expected to experience outflows of about $141.6 million.
AU Small Finance Bank, a retail-focused lender, is likely to receive about $172 million in inflows following an increase in its index weighting, according to Nuvama.
MSCI has also made significant changes to its Small Cap Index, reducing the number of Indian stocks from 508 to 480. The Indian small cap index has fallen 7 percent since the start of 2025, underperforming broader benchmarks.
The rebalancing comes amid continued pressure on India’s small-cap stocks, where concerns over inflated valuations and sustainability of earnings have weighed on sentiment.
While L&T Finance moved from the Small Cap Index to the Global Standard Index, 34 companies were removed, including Dilip Buildcon, Zaggle Prepaid, Sterlite Technologies and KNR Constructions.
On the other hand, seven Indian companies, including renewable energy player Premier Energies, deposit services provider National Securities Depository, pharmaceutical company Emcure Pharma and cement maker JSW Cement, were added to the Small Cap Index.
Published on February 11, 2026
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