MSCI May 2026 Rebalance: Stocks Likely to Be Included and See Inflows of Up to $380 Mil

Synopsis: The May 2026 MSCI India Index Review is expected to include several Indian stocks, potentially attracting significant passive fund inflows. Companies like Federal Bank, MCX, NALCO, Adani Green, Adani Energy, and Indian Bank could see inflows ranging from $190 million to $380 million. 

According to a report by Axis Capital, some companies are on the verge of being included in the May MSCI India Index Review. A significant inflow of funds is expected upon the inclusion of these companies, which could impact stocks. These estimated passive inflows range from ~$190 million to ~$380 million, with some names showing high flow-to-average daily volume ratios, indicating potential liquidity-led price impact around the event.

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. 

In India, MSCI index changes are closely watched because they influence foreign portfolio investment flows and overall market sentiment. Stocks that are added to the index often see inflows from passive funds, while those removed may experience outflows, leading to short-term price volatility.

Ahead of the upcoming May MSCI India Index Review, several Indian stocks are witnessing heightened activity amid expectations of inclusion or exclusion, which could significantly impact their near-term trading performance. List of Stocks likely to be included

Federal Bank Ltd

Federal Bank is a prominent private sector bank in India, headquartered in Kerala. It offers a full range of banking services, including retail banking, corporate banking, MSME loans, and NRI banking. The bank is well known for its strong presence in South India and has been steadily expanding its digital banking platforms, improving customer experience and operational efficiency. This stock is likely to be included in the MSCI index and may experience a potential inflow of approximately $380 million.

MCX Limited

MCX (Multi-Commodity Exchange of India Ltd) is the largest commodity derivatives exchange in India. It provides a platform for trading in commodities such as gold, silver, crude oil, natural gas, and agricultural products. MCX plays an important role in price discovery and risk management for participants, supporting hedging and investment activities in the Indian commodities market. This stock is likely to be included in the MSCI index and may experience a potential inflow of approximately $270 million.

NALCO Ltd

NALCO (National Aluminium Company Limited) is a Government of India public sector enterprise and one of the country’s leading integrated aluminium producers. It is involved in bauxite mining, alumina refining, and aluminium smelting. NALCO is known for its large-scale production capacity, strong resource base, and contribution to India’s self-reliance in the metals and mining sector. This stock is likely to be included in the MSCI index and may experience a potential inflow of approximately $265 million.

Adani Green Ltd

Adani Green Energy Limited is a major renewable energy company under the Adani Group. It focuses on generating electricity from solar and wind energy sources. The company is one of India’s largest renewable energy producers and is rapidly expanding its capacity to support the country’s clean energy transition and long-term sustainability goals through large-scale green infrastructure projects. This stock is likely to be included in the MSCI index and may experience a potential inflow of approximately $250 million.

Adani Energy Ltd

Adani Energy Solutions Limited is engaged in power transmission and distribution services in India. The company builds and operates high-voltage transmission lines that connect power generation sources to consumption centers. It plays a key role in strengthening India’s electricity infrastructure and ensuring efficient, reliable, and large-scale power evacuation across regions. This stock is likely to be included in the MSCI index and may experience a potential inflow of approximately $220 million.

Indian Bank Ltd

Indian Bank is a major public sector bank headquartered in Chennai, India. It provides a wide range of financial services, including retail banking, corporate lending, agricultural finance, and digital banking solutions. After merging with Allahabad Bank, its scale and reach expanded significantly. The bank continues to strengthen its nationwide presence and improve service delivery through modernization and technology adoption. This stock is likely to be included in the MSCI index and may experience a potential inflow of approximately $190 million.

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