Archive · 31 Aug 2026
MSCI Rebalance Puts Indian Stocks Under Trading Spotlight
MSCI is changing which Indian companies are included in one of its important stock indexes.
Four companies will be added, while three will be removed.
Some other companies will receive larger or smaller shares in the index.
These changes can make investment funds buy or sell large amounts of shares.
Laurus Labs is expected to receive the largest inflow among the new additions.
Reliance Industries is expected to face the biggest outflow because its index weight is being reduced.
The changes will be reflected in trading at Monday’s close and take effect from September 1.
The event will also test India’s new system for deciding official closing prices.
Large orders could cause sharp price movements, especially in less-traded stocks.
MSCI will add Laurus Labs, Lenskart, Adani Energy Solutions and Groww to its index.
Balkrishna Industries, SBI Cards and Astral will be removed from the index.
The four additions are expected to attract about $1.516 billion in passive-fund inflows.
Reliance Industries faces the largest estimated outflow, at about $523 million, after its weight is reduced.
The reshuffle will test India’s new closing auction session, which could increase volatility near Monday’s market close.
- Who
- MSCI, passive investment funds, and the affected Indian companies and their investors.
- What
- An MSCI index reshuffle will add four Indian stocks, remove three, and change the weightings of several others.
- When
- The changes were announced on August 13, will be reflected in trading at Monday’s close, and take effect from September 1.
- Where
- In Indian stock markets, using India’s new closing auction session.
- Why
- Index changes require passive funds to adjust their portfolios, potentially creating substantial inflows, outflows and short-term volatility.
- Index additions
- Laurus Labs, Lenskart, Adani Energy Solutions and Groww
- Index removals
- Balkrishna Industries, SBI Cards and Astral
- Estimated inflows from additions
- Approximately $1.516 billion
- Estimated outflows from removals
- Approximately $450 million
- Largest estimated inflow
- Eternal, at approximately $674 million, among stocks receiving higher weights
- Largest estimated outflow
- Reliance Industries, at approximately $523 million
- Effective date
- September 1
- Closing auction session
- A roughly 20-minute auction introduced on August 3 to determine official closing prices