Reliance Industries (RIL) shares came under pressure in early trade on Thursday after MSCI announced changes to its India index as part of its August 2026 review. The stock fell as much as 1.50% to hit an intraday low of Rs 1,329 per share.
At 9:41 am, RIL shares were trading 1.14% lower at Rs 1,312 apiece on the BSE. In comparison, the BSE Sensex was down 0.23% at 77,790 levels.
The weakness in RIL came after MSCI reduced the company's weightage in its India index. The rejig is estimated to trigger an outflow of around $523 million from RIL.
MSCI Rejig: Other Key Changes
Jio Financial Services is expected to see an outflow of $61 million, followed by Indian Hotels at $32 million, Aditya Birla Capital at $21 million and Colgate-Palmolive at $16 million.
The changes will be implemented after the August 31, 2026 adjustment and will come into effect from September 1, 2026.
Meanwhile, Laurus Labs, Lenskart, Adani Energy Solutions and Groww have been added to the MSCI Standard Index as part of the August review. Balkrishna Industries, SBI Cards and Astral have been removed.
Following the changes, India's weight in the MSCI Standard Index is set to increase to 11.9% from 11.8%, while the number of Indian constituents will rise to 166 from 165.
According to Nuvama Alternative & Quantitative Research, the additions are expected to attract inflows of $598 million into Laurus Labs, $352 million into Lenskart, $310 million into Adani Energy Solutions and $256 million into Groww. The exclusions are expected to see outflows of $169 million for Balkrishna Industries, $143 million for SBI Cards and $138 million for Astral.
The review also includes weight changes for several existing constituents. Eternal is expected to see the largest inflow from a weight increase at $674 million, followed by Adani Enterprises at $202 million, Adani Ports at $77 million, JSW Energy at $34 million, Adani Power at $28 million, GMR Airports at $22 million and Swiggy at $13 million.
MSCI has also revised upwards the free-float factors of several Adani Group companies as part of the review.
In the MSCI Small Cap Index, India will see 13 additions and 19 exclusions. India's weight in the Small Cap Index is set to increase to 22.2% from 22.0%.
RIL Q1 Results Highlights
Reliance Industries reported a 23% year-on-year rise in Q1 profit to Rs 20,946 crore, beating analysts' estimate of Rs 20,451 crore. Consolidated revenue rose 5% sequentially to Rs 3.09 lakh crore, ahead of the Rs 3.01 lakh crore consensus estimate, while EBITDA increased 8% to Rs 47,517 crore. The operating margin expanded to 15.4% from 15%.
The O2C business was the key growth driver, with revenue rising 9% QoQ to Rs 2.02 lakh crore and EBITDA jumping 17% to Rs 17,010 crore. Oil and gas EBITDA rose 19% to Rs 4,873 crore, with margins expanding to 78.96%.
Retail remained weak, with revenue down 8% QoQ to Rs 90,409 crore and EBITDA falling 9% to Rs 6,309 crore. Meanwhile, Jio reported an ARPU of Rs 215.60, slightly below the Rs 216 Bloomberg estimate, while its subscriber base stood at 53.3 crore.
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