MSCI Rejig: LIC, Meesho likely to enter India Standard Index; OFSS, Siemens Energy may be dropped
Life Insurance Corporation of India (LIC) and Meesho could be among the key beneficiaries of the upcoming MSCI India Standard Index rejig, while Oracle Financial Services Software (OFSS) and Siemens Energy India may face exclusion, according to JM Financial Institutional Securities.
In its analysis of the November 2026 quarterly review, the brokerage identified LIC and Meesho as high-probability candidates for inclusion in the MSCI India Standard Index. Both stocks meet the required free-float-adjusted market capitalisation and minimum size thresholds, making them potential additions to the benchmark.
The MSCI India Standard Index review announcement is scheduled for 11 November, after market hours, with the changes set to take effect on 1 December, JM Financial said. The brokerage expects the review to result in up to three inclusions and two exclusions, potentially triggering significant passive fund flows.
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Apart from the potential additions, Coforge has emerged as a high-probability candidate for migration from the MSCI India Small Cap Index to the Standard Index, according to JM Financial.
The brokerage attributed the potential upgrade to the recent increase in the company's market capitalisation and improvements in liquidity metrics. Such a migration could bring the stock into the investment universe of a wider pool of institutional investors tracking the Standard Index.
On the other side of the rejig, JM Financial identified Oracle Financial Services Software and Siemens Energy India as high-probability candidates for exclusion from the MSCI India Standard Index.
The brokerage said both companies have experienced sustained deterioration in free-float market capitalisation. Fundamental pressures and structurally low free float have also weighed on their eligibility, potentially pushing them below MSCI's minimum size or liquidity requirements for continued index membership.
The proposed changes could have a notable impact on passive investment flows into Indian equities. JM Financial estimates that likely inclusions could attract around $1.9 billion in passive inflows, while potential exclusions could see outflows of approximately $497 million.
This would translate into estimated net passive inflows of about $1.4 billion into India, the brokerage said. These projections are indicative and assume there are no concurrent changes in country-level weights or emerging-market index rebalancing.
MSCI index reviews are closely tracked by passive funds and quasi-passive institutional investors, as changes in index constituents can prompt portfolio adjustments around the effective date. The final inclusions and exclusions, however, will depend on MSCI's official announcement.
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