Synopsis: In MSCI’s February 2026 index review, Aditya Birla Capital and L&T Finance have been added to the Global Standard Index, while IRCTC has been removed, and the AU Small Finance Bank weight has been adjusted. India’s overall weight remains unchanged, but the number of Indian companies in the Standard Index has increased.
MSCI has announced the results of its February 2026 index review, detailing changes to the MSCI Global Standard Indexes in a statement released early Wednesday. Such inclusions or removals of companies could trigger significant fund inflows or outflows, potentially impacting the stocks.
The MSCI rejig refers to the quarterly process where Morgan Stanley Capital International (MSCI), a leading global index provider, reviews and rebalances its stock indices. During this update, MSCI may add or remove stocks and adjust the weightings of companies within the indices.
MSCI conducts comprehensive index reviews four times a year, in February, May, August, and November, with changes typically taking effect at the end of each review month. These adjustments are driven by factors such as a company’s market capitalization, trading volumes, and the proportion of shares available for public trading (free float). This process ensures that the indices stay aligned with current market dynamics and continue to be relevant for global investors.
For India, these changes have a direct impact on foreign investment flows and market sentiment, making MSCI rejig announcements closely monitored events in the financial markets. Here are the stocks that have been included and included in the Rejig
MSCI has announced the results of its February 2026 index review, detailing changes to the MSCI Global Standard Indexes. As part of the update, Aditya Birla Capital Ltd and L&T Finance Ltd will be added to the index, while IRCTC will be the sole Indian company removed.
The review also includes a weight adjustment for AU Small Finance Bank, reflecting a change in its free float, which will increase its representation in the index. Despite these constituent changes, India’s overall weight in the MSCI Standard Index will remain at 14.1%, while the total number of Indian companies will rise slightly to 165 from 164.
Aditya Birla Capital Limited
Aditya Birla Capital Limited (ABCL) is a leading financial services company in India, part of the Aditya Birla Group, one of the largest conglomerates in the country. ABCL offers a wide range of financial products and services across various sectors. The estimates from Nuvama Alternative & Quantitative Research suggest that Aditya Birla Capital could attract inflows of about $257 million.
L&T Finance Ltd
L&T Finance Ltd (LTF), a subsidiary of Larsen & Toubro Ltd (L&T), is a leading Mumbai-based Non-Banking Financial Company (NBFC) in India with a ‘AAA’ credit rating. The company has transformed into a retail-focused lender, offering products like farm equipment, two-wheeler, micro, home, and SME loans. L&T Finance is projected to see inflows of around $238 million.
AU Small Finance Bank Ltd
AU Small Finance Bank (AU SFB) is India’s largest Small Finance Bank, transforming from a vehicle finance company (founded in 1996) into a scheduled commercial bank in April 2017. Headquartered in Jaipur, it focuses on retail banking for the unserved/underserved segments. AU Small Finance Bank may receive inflows of nearly $172 million due to the increase in its index weight.
IRCTC Limited
IRCTC (Indian Railway Catering and Tourism Corporation) is a leading public sector enterprise in India, primarily responsible for catering, tourism, and online ticketing services for Indian Railways. As one of the most prominent companies in the Indian travel and tourism sector, IRCTC has a significant market presence. IRCTC is likely to witness estimated outflows of about $142 million following its exclusion.
Along with it, in addition to changes in the Standard Index, MSCI has implemented several revisions to the Small Cap Index. The Indian small-cap segment has experienced a notable number of removals, with over a dozen stocks slated for exclusion. Consequently, the number of Indian companies in the Small Cap Index will decrease from 508 to 480 following the upcoming rebalance.
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