Global index provider MSCI Inc. has announced major changes in its latest index review and rebalance, affecting stock markets across multiple countries including India, the United States, Europe, and several Asian markets.
These changes are closely tracked by global investors because large investment funds and ETFs follow MSCI indices. As a result, stocks added or removed from the index often witness significant buying or selling activity.
The changes will become effective after market close on February 27, 2026.
What is MSCI and Why is it Important?
MSCI (Morgan Stanley Capital International) is a US-based company that creates global stock market indices used by investors worldwide.
These indices are followed by:
- Global mutual funds
- Exchange Traded Funds (ETFs)
- Pension funds
- Institutional investors
When a stock is added to an MSCI index, funds tracking the index must buy that stock, increasing demand. Conversely, stocks removed from the index may face selling pressure as funds exit their positions.
Key Changes in India
Companies Added to the Index
Two Indian companies have been added to the MSCI Global Standard Index:
- Aditya Birla Capital
- L&T Finance
Their inclusion is expected to attract foreign investments, potentially increasing trading volumes and stock price activity.
Company Removed from the Index
- IRCTC (Indian Railway Catering and Tourism Corporation) has been removed from the MSCI Global Standard Index.
Following removal, some global funds may reduce their holdings, which could create short-term pressure on the stock, although the company’s core business remains unaffected.
Weight Adjustment
AU Small Finance Bank has seen an increase in its index weight.
This means index-tracking funds may allocate higher investments to this stock.
Changes in the United States
As part of the February 2026 MSCI equity index review, multiple U.S. companies were either added or removed across the broad global index (MSCI ACWI) and MSCI USA standard indexes:
U.S. Stocks Added
These firms were among the largest additions by market capitalization into the broader MSCI indexes:
- AST SpaceMobile A (NASDAQ: ASTS) – satellite communications company (added to MSCI ACWI)
- Coherent Corp (NYSE: COHR) – photonics and specialty lasers manufacturer
- FTAI Aviation Ltd (NASDAQ: FTAI) – aviation and leasing business
Other U.S. adds (listed in MSCI USA Standard Index list) include: - Alexandria Real Estate Equities
- Casey’s General Stores
- American Financial Group
- Curtiss-Wright Corp
- Essential Utilities
- Paycom Software
- Lumentum Holdings
…among several others where the index review lists 8 additions in total for U.S. indices.
U.S. Stocks Removed
Several U.S. names were deleted from the MSCI Global Standard Index list in this review, including:
- DocuSign – digital signature technology provider
- Brown-Forman Corp – spirits and beverages company
- Baxter International – healthcare products manufacturer
- Booz Allen Hamilton A – consulting firm
- JM Smucker Co – food products company
…and other U.S. stocks listed under 15 total deletions from MSCI USA Standard.
Impact:
These specific additions and removals may trigger portfolio rebalancing in U.S.-focused ETFs and index funds, leading to increased buying for newly added names and potential selling pressure on the removed names.
Changes in Other Countries
Sweden — Index Moves
Swedish stocks also saw specific changes this cycle:
Swedish Stocks Added
- Verisure PLC – added to the MSCI Global Standard Index
- Noba Bank Group AB – included in the Global Small Cap Index
- Briox AB – added to MSCI Global Micro Cap Index
- Momentum Group AB – added to Micro Cap
- Sotkamo Silver AB – added to Micro Cap
Swedish Stock Removed:
Raketech Group Holding PLC – deleted from MSCI Global Micro Cap Index
Pakistan — Frontier & Small Cap Index Changes
For Pakistan’s MSCI indices, the following specific company changes are reported:
Added to Pakistan Small Cap Index
- Security Papers Limited (SEPL)
- Zarea Limited (ZAL)
Removed from Pakistan Frontier & Small Cap
- Abbott Laboratories (Pakistan) Limited – removed from the Frontier Markets Standard Index
- Lalpir Power Limited (LPL) – removed from Small Cap Index
Thailand — Small Cap Index Adjustments
Thailand’s MSCI Small Cap Index saw the following changes:
Added
- Central Retail Corporation (CRC)
- Indorama Ventures (IVL)
- Jasmine Technology Solution (JTS)
Removed
- Hana Microelectronics (HANA)
- JMT Network Services (JMT)
- MK Restaurants Group (M)
- Plan B Media (PLANB)
Possible Market Impact
According to analysts:
✔ Stocks added to indices often see increased foreign fund inflows.
✔ Trading volumes and price volatility may rise in affected stocks.
✔ Removed stocks may face temporary selling pressure.
However, index changes do not directly impact company fundamentals; they mainly influence short-term demand and supply dynamics.
What Should Investors Do?
Market experts suggest investors:
- Should not make decisions based solely on index changes,
- Must focus on company fundamentals and long-term growth prospects,
- Should be prepared for short-term price volatility.
Outcome
MSCI index reviews play a major role in directing global investment flows. The latest changes impact companies across India and other global markets, potentially creating short-term price movements as funds rebalance portfolios.
Investors can expect increased activity in affected stocks as global funds adjust their holdings in line with the new index composition.
Source: MSCI Index Review Announcement and global financial market updates.
