Image Source: Business Standard
August 26, 2025, witnessed a sharp uptick in select stocks as Swiggy, Vishal Mega Mart, Waaree Energies, and Hitachi Energy India rallied between 2.1 percent and 5.6 percent on expectations of strong passive inflows following their inclusion in the MSCI Global Standard Index. The rebalancing, effective after market close today, is projected to trigger cumulative inflows of nearly USD 1 billion into these four stocks, according to estimates from Nuvama Alternative & Quantitative Research.
Key Highlights From The MSCI Adjustment
- Swiggy is expected to attract USD 285 million in passive inflows, equivalent to approximately 6.5 crore shares
- Vishal Mega Mart may see USD 287 million in inflows, adding liquidity to an otherwise tightly held stock
- Waaree Energies and Hitachi Energy India are each projected to receive inflows of USD 217 million and USD 240 million respectively
- The MSCI changes will take effect after market close on August 26, 2025
Stock Performance And Market Reaction
- Swiggy rose 2.1 percent intraday, trading above its IPO price of Rs 390, despite broader market weakness
- Vishal Mega Mart gained 4.3 percent, continuing its post-listing momentum with a near 90 percent rise from its IPO price of Rs 78
- Waaree Energies climbed 5.6 percent, rebounding from a recent 15 percent correction from its record high of Rs 3,743
- Hitachi Energy India added 3.9 percent, extending its year-to-date gains to over 25 percent
Sectoral Context And Strategic Implications
- Swiggy’s inclusion reflects the growing weight of consumer-tech in global benchmarks, with its diversified quick-commerce and food delivery model
- Vishal Mega Mart’s entry underscores investor appetite for value retail chains with strong Tier II and Tier III penetration
- Waaree Energies and Hitachi Energy India are seen as key plays on India’s solar supply chain and grid modernization efforts
- The MSCI India Standard Index captures approximately 85 percent of India’s free-float market cap, making these inclusions significant for global fund flows
Impact On Portfolio Flows And Trading Dynamics
- Passive funds tracking MSCI indices are mandated to replicate the index composition, leading to automatic buying of newly added stocks
- Historically, 70 to 80 percent of required trades are executed in the four sessions preceding the rebalance date
- Short-term alpha tends to favor additions, which typically rally 3 to 12 percent into the event window
- Deletions, on the other hand, underperform by 7 to 15 percent due to forced selling pressure
Exclusions And Weight Adjustments
- Sona BLW Precision Forgings and Thermax have been removed from the MSCI Standard Index, likely triggering outflows of USD 186 million and USD 154 million respectively
- Eternal (Zomato) faces a weight cut due to foreign ownership cap, with an estimated USD 571 million in outflows
- Asian Paints, Jindal Steel & Power, and Havells India are also expected to see reduced weightage and moderate outflows
Conclusion
The MSCI August 2025 rebalancing has injected fresh momentum into Swiggy, Vishal Mega Mart, Waaree Energies, and Hitachi Energy India, with passive inflows driving short-term price action. As these stocks integrate into global portfolios, their liquidity, visibility, and valuation benchmarks are set to evolve. For investors, the MSCI rejig offers both tactical opportunities and strategic insights into India’s shifting equity landscape.
Sources: CNBC-TV18, Business Today, The Hindu BusinessLine, NDTV Profit.
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