MSCI May Rejig: Coromandel, Paytm, Nykaa Set For Big Inflows
MSCI index rebalancing plays a key role in determining passive fund flows into Indian equities.
The MSCI India Standard Index rebalancing is scheduled to be announced early Wednesday. The changes will take effect on May 30.
According to the IIFL Alternate Desk, the global index firm may add three stocks, namely, Coromandel International Ltd., Paytm-parent One 97 Communications Ltd. and Nykaa operator FSN E Commerce Ventures Ltd. to its gauge.
Coromandel is expected to see an inflow of $204 million, representing 13.8 times its average daily volume if it is included in the MSCI index. The stock has climbed 24% so far this year and doubled in the last 12 months.
Paytm is anticipated to see an inflow of $194 million or 3.1 times its ADV. Shares of the company have risen over 149% in the last 12 months and fallen 13% in 2025 so far.
FSN E-Commerce Ventures is projected to receive $173 million in inflows, equivalent to 13.5 times its ADV. The stock has surged 20% this year.
Conversely, Thermax Ltd. is slated for deletion, which is expected to result in an outflow of $126 million, or 20.5 times its ADV. Shares have tanked 28% in the last 12 months and 15% so far this year.
MSCI index rebalancing plays a key role in determining passive fund flows into Indian equities, as changes in the index influence foreign portfolio investors' allocations, impacting liquidity and stock valuations.
