MSCI Index changes: Lenskart, Groww among 4 new entrants; $1.5 billion foreign inflow expected

Global index provider MSCI has added Laurus Labs, Lenskart Solutions, Adani Energy Solutions and Billionbrains Garage Ventures, the parent of Groww, to its MSCI India Index. At the same time, Astral, Balkrishna Industries and SBI Cards and Payment Services have been removed.

The changes will come into effect after the close of trading on August 31 and will be reflected from September 1.

But why does this matter for investors? Here is a look at the impact of the MSCI rejig – 

Four stocks enter the MSCI India Index

The latest review brings together four companies from very different parts of the economy.

Laurus Labs represents pharmaceuticals. Lenskart brings organised eyewear retail into the index. Adani Energy Solutions represents the power transmission space, while Billionbrains Garage Ventures gives the index exposure to the digital investment platform Groww.

Moreover, it is also interesting to note that Lenskart and Groww are among the newer large listings to make the cut.

Lenskart listed on November 10, 2025, while Billionbrains Garage Ventures debuted just two days later. Both have now entered the MSCI India Index within less than a year of their stock-market listings.

The number of stocks in the MSCI India Index will consequently rise to 166 from 165.

Which stocks could see the biggest inflows?

According to Nuvama Alternative & Quantitative Research, Laurus Labs could attract an estimated $598 million in inflows. Lenskart could see around $352 million, while Adani Energy Solutions and Groww parent Billionbrains Garage Ventures could receive about $310 million and $256 million, respectively.

Altogether, these estimated inflows amount to roughly $1.52 billion.

Why would money move into these stocks?

Funds that track MSCI indices may need to adjust their portfolios when the index composition changes. That can create additional buying or selling pressure around the effective date.

Three stocks face the other side of the trade

While four stocks are gaining index representation, three companies are moving in the opposite direction.

Balkrishna Industries could see estimated outflows of around $169 million, according to Nuvama. SBI Cards is expected to see about $143 million leave the stock, while Astral could face around $138 million in estimated outflows.

However, it is important to note that the actual market impact can vary depending on fund positioning and trading activity.

Existing stocks are also getting reshuffled

MSCI has also adjusted the weights of several existing constituents. That means some stocks could attract or lose money even though they remain part of the index.

Eternal is expected to benefit the most from a weight increase, with estimated inflows of around $674 million. Adani Enterprises could see $202 million, followed by Adani Ports at $77 million.

JSW Energy, Adani Power, GMR Airports and Swiggy are also expected to see smaller inflows.

On the other side, Reliance Industries could see the largest outflow from a weight reduction. Nuvama estimates this at around $523 million.

Jio Financial Services, Indian Hotels, AB Capital and Colgate could also see outflows.

What does the MSCI move mean for India?

India’s weight in the MSCI Standard Index is expected to increase marginally to 11.9% from 11.8%.

That may look like a small change. But for a market followed closely by international funds, even modest weight changes can translate into significant capital flows.

MSCI says its India index covers about 85% of the Indian equity universe across the large- and mid-cap segments.

The changes will be implemented after the August 31 market close.

So, the real action could come around the implementation date, when global funds adjust their portfolios to match the new MSCI weights.

Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.