MSCI reshuffle adds two Indian firms while IRCTC exits global index
The MSCI Global Standard Index is set for a reshuffle, with two Indian firms joining and one exiting. The changes take effect at the close of trading on February 27. This quarterly review follows strict criteria like market size, free float, and liquidity.
Analysts expect the adjustments to trigger significant fund movements, affecting both stock prices and ETFs tracking the index.
Aditya Birla Capital and L&T Finance will be added to the MSCI Global Standard Index. Their inclusion is likely to attract passive inflows, with estimates of around $257 million for Aditya Birla Capital and $238 million for L&T Finance. Meanwhile, AU Small Finance Bank will see its weighting increase within the index.
The Indian Railway Catering and Tourism Corporation (IRCTC) is being removed, which may lead to outflows of about $142 million as passive funds adjust their holdings. Since the changes were announced, stock reactions have varied—related Aditya Birla entities, for example, have shown year-to-date shifts ranging from -32% to +74.35% as of early 2026.
India's overall weight in the MSCI Standard Index remains steady at 14.1%. ETFs like the iShares MSCI World ETF, which mirror the index, will reflect these updates, potentially influencing share prices in the process.
The MSCI adjustments will take effect after market close on February 27. Passive funds are expected to rebalance, leading to inflows for the new additions and outflows for IRCTC. The changes highlight how index reviews directly impact stock valuations and fund allocations.
