4 Indian Stocks Set for MSCI Standard Index Inclusion, May Draw Over US$1 Billion in Inflows

The MSCI India Index is a stock market index that tracks the performance of large and mid-sized companies listed in India. With 158 constituents, it covers approximately 85% of the Indian equity universe. The index is widely used by global investors and mutual funds to make investment decisions and manage portfolios focused on Indian markets.

4 New Stocks Set to Join MSCI Standard Index

As part of the upcoming MSCI review scheduled for August 8, 2025, four Indian companies are expected to be included in the MSCI Standard Index, according to Nuvama Alternative & Quantitative Research. These are:

• Vishal Mega Mart – Estimated inflow: US$287 million
• Swiggy – Estimated inflow: US$285 million
• Hitachi Energy India – Estimated inflow: US$240 million
• Waaree Energies – Estimated inflow: US$217 million

Together, these inclusions could attract over US$1.03 billion in foreign inflows, as global funds aligned with the MSCI Index adjust their portfolios.

Expected Removals from MSCI Standard Index: Sona BLW and Thermax

While some stocks are gaining entry, others may lose their place:

• Sona BLW Precision Forgings – Potential outflow: US$186 million
• Thermax – Potential outflow: US$154 million

These changes are expected to become effective on August 26, 2025.

MSCI Standard Index: Performance Snapshot (as of July 31, 2025)

Despite a short-term dip, the index has shown strong long-term growth, outperforming many global peers in the emerging market space.

Valuation & Fundamentals

• Dividend Yield: 1.19%
• Price-to-Earnings (P/E): 25.76
• Forward P/E: 22.10
• Price-to-Book Value (P/BV): 3.68

These indicators show that Indian equities are currently trading at relatively high valuations, a sign of investor confidence.

Read more: SEBI Chairman Dismisses Reports on Curbing Weekly Expiry as 'False and Speculative'; BSE Share Price in Focus.

Conclusion

The expected changes in the MSCI Standard Index underline India’s rising prominence in global equity markets. For retail investors, this presents an opportunity to stay informed and consider rebalancing their portfolios through their demat accounts. As the Indian market continues to attract global attention, keeping an eye on MSCI developments may help investors make better decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.