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MSCI adds four Indian stocks to flagship global index in November review

By Reuters News

By Vivek Kumar M

Nov 12 (Reuters) - Index provider MSCI has added four Indian companies to its flagship Global Standard index and increased the weights of 11 other stocks as part of its November index review, effectively increasing India's weight in the MSCI Emerging Markets Index.

MSCI review changes dated November 11 showed that Adani Green Energy ADNA.NS, IT company Coforge COFO.NS, Life Insurance Corporation of India LIFI.NS and e-commerce company Meesho MEES.NS were added to the flagship index. Their shares rose between 0.5% and 3.4% after the announcement.

The review also removed agro-chemicals maker PI Industries PIIL.NS.

"India's weight in the standard emerging market index will move up to 13.15% from 12.9% after this review implementation," IIFL said in a note.

India's weight in MSCI emerging market index had dropped to nearly 11% by May 2026, from the peak of 20% in 2024, as AI-driven rallies in Taiwan and South Korea outpaced Indian equities, which lacked large AI-linked technology stocks.

The decline pushed India from the second-largest to the fourth-largest constituent in the MSCI Emerging Markets Index, behind Taiwan and South Korea, according to a June report from State Street Investment Management.

https://www.reuters.com/graphics/INDIAMSCIEM-YTDNOV12/YTDNOV12-INDIAMSCIEM/moparxodeva/chart.png

However, fading momentum in AI-linked stocks since mid-October has prompted investors to rotate into other emerging markets, including India.

Analysts said the rotation into India accelerated earlier this month when a Democratic victory in US mid-term elections raised concerns about potential regulatory scrutiny of AI investments.

Foreign portfolio investors have bought Indian shares worth $6.43 billion in November, their biggest monthly purchase since September 2024.


STOCK CHANGES

As part of its November review, MSCI also increased the weights of 11 Indian stocks, including Groww BILO.NS, Lenskart Solutions LENS.NS, Coal India COAL.NS and Paytm PAYT.NS, in its flagship index.

The changes will take effect at the market close on November 30.

https://www.reuters.com/graphics/MSCIINDIA-NOVEMBER/NOVEMBER-MSCIINDIA/klpyrxlbovg/chart.png

MSCI also added 11 Indian companies to its EM Small Cap Index and removed 29.

"Sharp volatility towards the end of October triggered price declines, resulting in multiple exclusions," Nuvama Wealth said.

Small-cap .NIFSMCP100 and mid-cap .NIFMDCP100 stocks in India dropped 4.1% and 3.4%, respectively, in October, even as benchmark Nifty 50 .NSEI and Sensex .BSESN rose 1.9% and 2.7%, respectively.

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