MSCI Feb rejig: Aditya Birla Capital, L&T Finance added; IRCTC excluded | Markets News
MSCI announced the latest index rebalancing, which will take effect on February 27, 2026. According to the official statement, Aditya Birla Capital and L&T Finance will be added to the MSCI Standard Index, while Indian Railway Catering and Tourism Corporation (IRCTC) will be removed. Additionally, AU Small Finance Bank is scheduled to gain weight following variable adjustment. Despite these changes, India’s overall representation in the MSCI Standard Index remains stable at 14.1 percent, but the total number of Indian constituents will increase from 164 to 165, according to Nuvama Alternative and Quantitative Research.
The inclusions follow a significant period of outperformance. Last year, Aditya Birla Capital and L&T Finance surged 111 per cent and 100 per cent respectively, far outpacing the Nifty50’s gain of 10.9 per cent. In comparison, AU Small Finance Bank rose 73 per cent while IRCTC shares fell 19 per cent during the same period.
Estimated entrances and exits
According to Nuvama’s predictions, the change will trigger significant capital movements:
- Aditya Birla Capital: Estimated $257 million inflow
- L&T Finance: Estimated inflow of $238 million
- AU Small Finance Bank: Estimated inflow of $172 million (due to weight increase)
- IRCTC: Estimated outflow of $141.6 million
Small cap index adjustments
The MSCI Smallcap Index will also undergo a significant overhaul with the removal of more than a dozen Indian stocks. This will reduce the total number of Indian stocks in the Smallcap index from 508 to 480.
Gokaldas Exports ($8.2 million), Sterlite Technologies ($5.8 million), KNR Constructions and J Kumar Infraprojects ($3.8 million each), VRL Logistics and Ashoka Buildcon ($3.5 million each), Anup Engineering ($3.4 million), Rajesh Exports ($2.7 million) and Heritage Foods, Shoppers Stop, Keystone Realtors and Dhanuka Agritech ($2.6 million each). dollars), followed by Dilip Buildcon ($2.5 million).
On the other hand, new entrants to the Smallcap Index include Premier Energies ($15 million), National Securities Depository ($8 million), Emcure Pharmaceuticals ($7 million), JSW Cement ($6 million), Ashapura Minechem ($5 million), Canara HSBC Life Insurance ($5 million) and Thyrocare Technologies ($4 million).
Previous review highlights
In the previous November review, Fortis Healthcare, GE Vernova, One 97 Communications (Paytm) and Siemens Energy were added to the Global Standard Index, while Container Corp and Tata Elxsi were removed. Disclaimer: The outlook and outlook shared are those of the respective brokers/analysts and are not endorsed by Business Standard. Reader discretion is advised.
