Following the rejig, the number of Indian companies in the MSCI Global Standard Index will rise to 165 from 164.
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THOMAS WHITE
Global index provider MSCI added financial services firms Aditya Birla Capital and L&T Finance to its widely tracked Global Standard Index, while removing state-run Indian Railway Catering and Tourism Corporation (IRCTC) in a periodic reshuffle.
The changes, disclosed on Wednesday, will take effect on February 27.
MSCI indexes serve as globally recognised benchmarks tracked by large passive funds, implying that inclusions typically attract fresh capital inflows, while removals usually entail outflows.
Following the rejig, the number of Indian companies in the MSCI Global Standard Index will rise to 165 from 164. However, India’s overall weight in the index will remain steady at 14.1 per cent, according to Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research.
Nuvama estimates that Aditya Birla Capital and L&T Finance could see passive inflows of approximately $257 million and $238 million, respectively. In contrast, IRCTC is expected to face outflows of about $141.6 million.
AU Small Finance Bank, a retail-focused lender, is likely to receive around $172 million in inflows due to an increase in its index weight, according to Nuvama.
MSCI also made significant changes to its Small Cap Index, reducing the number of Indian constituents to 480 from 508. India’s small-cap index has declined 7 per cent since the start of 2025, underperforming broader benchmarks.
The reshuffle comes amid continued pressure on India’s small-cap stocks, where concerns over stretched valuations and earnings sustainability have weighed on sentiment.
While L&T Finance graduated from the Small Cap Index to the Global Standard Index, 34 companies including Dilip Buildcon , Zaggle Prepaid, Sterlite Technologies , and KNR Constructions were removed.
On the other hand, seven Indian firms, including renewable energy player Premier Energies, depository services provider National Securities Depository, pharmaceutical company Emcure Pharma and cement manufacturer JSW Cement were added to the Small Cap Index.
Published on February 11, 2026
