The latest quarterly review by MSCI (Morgan Stanley Capital International) has brought good news for Indian markets, with four prominent companies—Swiggy, Vishal Mega Mart, Hitachi Energy India, and Waaree Energies—being added to the MSCI Global Standard Index. These changes, announced on August 7, 2025, will take effect after market close on August 26, 2025, and are expected to attract substantial passive investment inflows from global funds that track MSCI benchmarks.

Industry estimates suggest that the inclusions could draw nearly $1 billion in passive investments. Swiggy is projected to receive up to $289 million, Vishal Mega Mart $258 million, Waaree Energies $233 million, and Hitachi Energy India $230 million. This inflow is driven by the fact that many global exchange-traded funds (ETFs) and institutional investors replicate MSCI indices, meaning they automatically buy shares of companies that are added.

On the flip side, the rebalancing will see Sona BLW and Thermax removed from the index, leading to estimated outflows of around $163 million and $121 million respectively. Such exits often prompt short-term selling pressure as index-tracking funds adjust their portfolios.

The MSCI Global Standard Index is one of the world’s most closely followed market benchmarks, covering large and mid-cap stocks across 23 developed and 27 emerging markets. Inclusion in this index not only brings immediate capital inflows but also enhances a company’s visibility and credibility among global investors. For India, this marks another step in its rising prominence in international markets—recent quarterly reviews in November 2024 and February 2025 also saw multiple Indian additions, underscoring sustained foreign investor interest.

The August review is part of MSCI’s regular quarterly comprehensive index rebalancing, aimed at ensuring its indices reflect current market realities. For Indian equities, such changes are more than symbolic—they directly influence foreign fund flows, market sentiment, and even the strategic positioning of domestic companies in global portfolios.

With these additions, India’s weight in MSCI indices is set to increase further, reinforcing its status as one of the fastest-growing and most attractive investment destinations in the emerging markets space. For the newly added companies, this is not just a nod of approval but an opportunity to tap into a wider pool of global capital, potentially accelerating their growth trajectories.