MSCI Index Rejig 2025: Swiggy, Vishal Megamart, Hitachi Energy, Waaree Energies Gain; Zomato, Asian Paints Face Outflows
Global investment bank Morgan Stanley has announced significant changes in the MSCI Standard Index, with several Indian stocks witnessing increased weightage while others face a reduction. This rejig is expected to trigger strong fund inflows into select companies and heavy outflows from others, directly impacting stock performance in the near term.
Major Inclusions: Strong Inflows Expected
Swiggy (SGI)
Estimated inflow: $293 million (approx. ₹2,570 crore)
Despite weak fundamentals, negative return on equity (ROE: -29%), and no promoter holding, Swiggy has been included on the back of India’s strong consumption story.
The stock has corrected nearly 50% from its December 2024 high of ₹600 to around ₹300, but rising revenue growth and improving traction have attracted MSCI’s confidence.
Vishal Megamart
Estimated inflow: approx. ₹2,245 crore
Promoter holding: 54% | Public holding: 5.5%
Strong fundamentals with ROE of 10.5% and ROCE of 13%, making it a stable consumer retail play.
The company recently reported sales of ₹3,140 crore and profits of ₹206 crore, close to lifetime highs.
Analysts note that compared to Swiggy, Vishal Megamart has a more sustainable business model with stable cash flows.
Hitachi Energy India
Estimated inflow: ₹2,044 crore
A leading player in power transmission and transformer solutions, Hitachi Energy is seen as a beneficiary of India’s rising electricity demand.
Reported Q1 FY26 revenue of ₹1,479 crore and profit of ₹132 crore, showing strong YoY growth.
Stock trades near lifetime highs with valuation easing from 500x PE to around 150x due to improving earnings.
Waaree Energies
Estimated inflow: Not disclosed, but stock gained 3.5% post-announcement.
India’s leading solar module manufacturer with strong presence in domestic and export markets.
Reported lifetime high sales of ₹4,400 crore and profits of ₹773 crore.
Strong financials: Promoter holding 64%, ROE 28%, ROCE 35%.
Seen as a direct play on India’s renewable energy demand.
Major Exclusions: Heavy Outflows Likely
Sona BLW Precision Forgings (Sonacom)
Expected outflow: ₹1,447 crore
Despite supplying components to Tesla and reporting ROE of 14% and ROCE of 18%, the stock has been excluded.
Currently trading near its multi-year low with limited sales growth in recent quarters.
Thermax
Expected outflow: ₹1,028 crore
A well-known name in industrial boilers, chemicals, and renewable solutions, but weakness in the global chemical sector may have led to exclusion.
Fundamentals remain strong with ROE of 13.5% and ROCE of 16%, though recent quarters have shown mixed growth.
Other Reductions in Weightage
Zomato – Outflow of ₹506 crore expected
Asian Paints – Outflow of ₹894 crore expected
JSPL – Outflow of ₹377 crore expected
Bharat Dynamics (BDL) – Outflow of ₹272 crore expected
What This Means for Investors
Stocks added to the MSCI Standard Index such as Swiggy, Vishal Megamart, Hitachi Energy, and Waaree Energies may see strong buying interest and potential upside.
Conversely, exclusions and reduced weightage stocks like Sona BLW, Thermax, Zomato, Asian Paints, JSPL, and BDL may witness near-term selling pressure.
Market analysts suggest investors conduct due diligence and consult financial advisors before taking fresh positions, as MSCI weightage changes often trigger short-term volatility.
