MSCI to include Paytm and three other Indian stocks in its flagship global index

MSCI is set to add Paytm and three other Indian stocks to its Global Standard Indexes, a move expected to draw total inflows of around $1.46 billion, according to Nuvama.

MSCI’s indexes are widely followed benchmarks for global investors, with roughly $18.3 trillion in assets under management linked to them. Consequently, even minor adjustments to index composition can trigger substantial fund movements across markets.

In the latest review, MSCI will remove IT company Tata Elxsi (TTEX.NS) and logistics firm Container Corporation of India (CCRI.NS) from its flagship index, likely leading to outflows of about $162 million and $146 million, respectively.

The review also increases the weightage of eight Indian stocks, including Asian Paints (ASPN.NS), Apollo Hospitals (APLH.NS), Lupin (LUPN.NS), and SRF (SRFL.NS), while reducing the weightage of seven others such as Samvardhana Motherson (SAMD.NS), Dr. Reddy’s (REDY.NS), REC (RECM.NS), and Zydus Life (ZYDU.NS).

Following these adjustments, India’s overall weight in the MSCI Standard Index will edge up to 15.6% from 15.5%, said Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research.

In its previous quarterly review in August, MSCI had added Swiggy (SWIG.NS), Vishal Mega Mart (VSSL.NS), and two other stocks to its flagship index.

Beyond the main index changes, MSCI will also add six Indian stocks and remove 30 from its Global Small-Cap Indexes as part of its latest quarterly update. The higher number of exclusions follows an increase in the global minimum market capitalization threshold to $505 million from $448 million, according to IIFL.

India recorded the second-highest number of small-cap deletions worldwide after the United States, underscoring the tightening eligibility standards’ growing impact on smaller companies.