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MSCI Index Inclusion Lifts Market Sentiment in India; Four Indian Firms Added to Global Standard Index

20 May, 2025 115

 

India’s equity markets opened marginally higher today — supported by robust quarterly earnings from select majors and a sentiment uplift triggered by MSCI Inc.’s latest global index reshuffle.
As per Reuters, four India-listed companies have been added to the MSCI Global Standard Index, effective this month — a move expected to drive approx. USD 1.46 billion in passive fund inflows into Indian equities.

MSCI Adds 4 Indian Leaders — Cementing India’s Weight in the Global Standard Index

1) One97 Communications Ltd. (Paytm)
Parent of Paytm — India’s prominent digital payment and mobile commerce brand.
It offers UPI payments, merchant QR solutions, recharge/bill payments, ticketing and is expanding in loans, wealth & insurance distribution.
The inclusion signals confidence in India’s fintech scaling and digital transaction backbone.

2) Fortis Healthcare Ltd.
One of India’s largest private hospital operators with a pan-India network of ~27–36 hospitals and ~4,500–4,750 beds.
Offers integrated tertiary & quaternary care — cardiology, oncology, neuro, renal care, mother-&-child specialities etc.
Global investors increasingly view Indian healthcare capacity as a long-term demand growth opportunity.

3) GE Vernova T&D India Ltd.
Engineering + manufacturing player in power transmission & distribution systems: HVDC, FACTS, transformers, GIS, automation & protection systems.
Has 100+ years of grid network presence in India.
As India accelerates infra build and power system modernisation — T&D firms are getting structural attention.

4) Siemens Energy India Ltd.
A newly de-merged listed entity (2024) from Siemens Ltd.
Focuses across the energy value chain — generation, grid technologies, industrial energy systems & energy transition solutions.
Recently announced ~₹460 crores Kalwa plant investment to strengthen domestic energy manufacturing capability.

Market Reaction

Benchmark indices opened higher but the strength was concentrated in large caps — while mid-caps and small-caps continued to show selective pressure.
Market strategists highlight this MSCI development as a near-term catalyst for FII accumulation, especially ahead of the index effective date — because all MSCI-benchmarked passive funds will be forced to buy these stocks to maintain weight parity.

Why this inclusion is strategically important

MSCI Global Standard Index is one of the most tracked global benchmarks. For a company, inclusion typically indicates:

  • improved visibility in international capital flows

  • stronger institutional credibility / compliance

  • increased relevance in the emerging-market theme

  • direct eligibility for passive + sovereign capital exposure

For India, every incremental MSCI weight increase strengthens its status shift — from “tactical EM pick” → to “core global allocation geography.”

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