Coromandel International and Nykaa to Join MSCI India Index; Paytm Misses Out

Global index provider MSCI announced that Coromandel International Ltd., part of the Murugappa Group, and FSN E-Commerce Ventures Ltd., the parent company of fashion and beauty platform Nykaa, will be added to the MSCI India Index, which forms a segment of the broader MSCI Global Standard Index. These changes will come into effect after the close of trading on May 30, 2025.

Importantly, there will be no deletions from the MSCI India Index in this review.

However, One97 Communications, the parent firm of digital payments platform Paytm, has not been reinstated to any of the MSCI indices. The company was dropped from the MSCI index in May 2024, and some market watchers had anticipated its return in this cycle.

Inflows Expected with New Additions

• Coromandel International is expected to attract passive inflows of around $252 million upon inclusion, as per various news reports
• Nykaa could see inflows of approximately $199 million.

Additionally, GMR Airports Infrastructure Ltd., which operates airports across India, will be added to the MSCI India Domestic Index alongside Coromandel International.

In contrast, Sona BLW Precision Forgings Ltd., an auto components manufacturer, will be removed from the MSCI India Domestic Index, but will find a place in the MSCI India Domestic Smallcap Index instead.

Also Read: A Quick Look at Nykaa’s Q4FY25 Results

Smallcap Index Changes

The MSCI India Domestic Smallcap Index will see 12 additions and 21 deletions in this rebalance. Notable additions include:

• Godrej Agrovet
• Hexaware Technologies
• Premier Energies

Key exclusions from the Smallcap Index include:

• Aarti Drugs
• Prince Pipes
• Orchid Pharma

Weightage Adjustments

Several stocks in the MSCI Global Standard Index will experience weightage changes:

• Companies like Cipla, Indus Towers, UltraTech Cement, Grasim Industries, and Vodafone Idea will see an increase in their weightage, which could collectively attract inflows of up to $50 million.
• On the flip side, heavyweights including HDFC Bank, ICICI Bank, Infosys, and Bharti Airtel will see their weightage reduced.

Conclusion

The latest MSCI index review reflects a significant reshuffling that could influence market sentiment and passive investment flows. The inclusion of Coromandel International and Nykaa in the MSCI India Index signals strong investor confidence in these companies, while the absence of Paytm highlights ongoing uncertainties around its market positioning

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