What’s Happening with MSCI and Indian Stocks? (May 2025 Update)

MSCI (Morgan Stanley Capital International) is a global company that creates stock indices. - These indices are used by big investors and funds around the world to decide where to put their money. - When a company is added to an MSCI index, it usually means more investors will buy its stock. Who Got Added This Time? In the latest review (effective May 30, 2025), "Coromandel International" (a fertiliser company) and "Nykaa" (a beauty and fashion e-commerce company) were added to the MSCI Global Standard Index. Why Does It Matter? When companies are added to MSCI indices, passive funds (which track the index) have to buy those stocks. This brings in a lot of money, called "passive inflows." • Coromandel may see $227–252 million coming in. • Nykaa might get $181–199 million. That’s a big boost. Who Missed Out? Paytm (One97 Communications) was expected to return to the index but didn’t make it. It was removed from MSCI last year and hasn't been added back. Other Changes: • No Indian stocks were removed from the Global Standard Index this time. • In the India Domestic Smallcap Index, 12 stocks were added, and 21 were removed. • In the India Domestic Index, Coromandel and GMR Airports were added, while Sona BLW was removed. Global Moves: MSCI added 6 Chinese stocks and removed 17. In Germany, Puma was removed. Bottom Line: Being added to an MSCI index often brings more investor attention and money. It can boost the stock price of added companies. For Coromandel and Nykaa, this is good news. For Paytm, it’s a missed opportunity—for now.