Jindal Steel & Power, Tata Elxsi among 5 stocks that may be added to MSCI Standard index

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26 Aug, 2025 12:21

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In the forthcoming semi annual review, MSCI could add five stocks and remove two stocks from its Standard Index, said Edelweiss Alternative & Quantitative Research in its latest report.

The next rebalancing of MSCI Standard index will take place on June 1 and the announcement related to stock rebalancing in the index will be made on May 12, 2022.

Jindal Steel & Power, Tata Elxsi, Voltas, Varun Beverages and Astral may be added in the MSCI Standard Index, however, Indraprastha Gas and MRF (India) could get excluded, said Edelweiss.

In last one month, Jindal Steel & Power was the biggest gainer among these stocks with 33 percent rally, followed by Tata Elxsi with 23.5 percent gains, Voltas (up 7 percent), Varun Beverages (up 8.5 percent) and Astral (up 13 percent).

The last three semi-annual reviews clearly indicated that the number of stocks in the MSCI Standard Index has been increasing.

In October 2020, there were a total 87 stocks in MSCI Standard Index, which then increased to 96 stocks in November 2020. Further, the count rose to 101 stocks in May 2021 review and in last review taken place in November 2021, the same increased to 106 stocks.

If we see the data provided by Edelweiss, there has been more number stocks addition than deletion from the MSCI Standard Index.

"In the wake of three eventful SAIR (Semi Annual Review) – in November 2020, May 2021 and November 2021 – we anticipate the upcoming May 2022 SAIR to be less exciting one: there are no names yet that could make the cut in our view," says Abhilash Pagaria, Head - Edelweiss Alterative & Quantitative Research.

Edelweiss feels the weightage of Reliance Industries could be seen increasing in the index, especially after the conversion of Partly Paid up shares to Ordinary shares in November 2021.

The domestic indices - Nifty50 and Sensex - have already made the adjustments.

"Now we expect MSCI to take the same in account in May 2022 Review. The ballpark inflow could be $180-200 million. It is a non-event in terms of impact," says Edelweiss.

The research firm further says India's weighting in the widely tracked MSCI Emerging Markets (EM) index shot up to approximately 12.3 percent now, from approximately 8.1 percent in end of October 2020.

In the same period (October 30, 2020 to March 22, 2022), BSE Sensex surged 46 percent and Nifty50 jumped 49 percent, while the broader markets - BSE Midcap was up 59 percent and Smallcap index climbed 87 percent.

"The two factors that have driven fresh inclusions and an uptick in the weightings of existing Indian constituents are: i) the new regime on foreign ownership limit (FOL) taking effect in the November 2020 review; and ii) domestic stocks' strong outperformance to other Emerging Markets counterparts," said Edelweiss.

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