MSCI Rejig: AB Capital, L&T Fin included, IRCTC out; check potential flows

Shares of Aditya Birla Capital Ltd. and L&T Finance Ltd. have been added to the MSCI Global Standard Index as part of MSCI's February 2026 review, the global index provider said in an official statement in the early hours of Wednesday.

IRCTC is the only Indian stock that has been excluded from the index.

Meanwhile, AU Small Finance Bank will see a weight increase in the index due to a float adjustment, MSCI said.

Following the rejig, India's weight in the MSCI Standard Index remains unchanged at 14.1%.

The number of Indian companies in the index will increase by one, rising from 164 to 165.

According to brokerage firm Nuvama Alternative & Quantitative Research, Aditya Birla Capital is estimated to see inflows of about $257 million (approximately Rs 2,328.12 crore), while L&T Finance could attract around $238 million.

IRCTC is expected to face outflows of about $142 million. AU Small Finance Bank is estimated to see inflows of around $172 million following the weight increase.

There are also several changes in the Small Cap Index. As the small-cap universe remained under pressure, the index will see over a dozen exclusions in India, with the stock count reducing from 508 to 480 post-rejig.

Multiple Indian stocks that have been added include Premier Energies, NSDL, Emcure Pharmaceuticals, JSW Cement, Ashapura Minechem, Canara HSBC Life Insurance and Thyrocare Technologies.

On the other hand, the Smallcap Index recorded a large number of exclusions from India. These include L&T Finance, Gokaldas Exports, Sterlite Technologies, KNR Constructions, Jkumar Infraprojects, VRL Logistics, Ashoka Buildcon, Anup Engineering, Chemplast Sanmar, Websol Energy Systems, Kaveri Seed Company, Zaggle Prepaid Ocean Services and Symphony.

Adjustments for this round of the MSCI rejig will take place in the final few minutes of trading on February 27.

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