MSCI Drops Adani Energy Solutions From May Review; Adds Federal Bank, MCX And Others

MSCI has decided not to add Adani Energy Solutions to its indices as part of the latest review, after the stock continued to remain on the National Stock Exchange’s (NSE's) short-term watchlist for unusual trading activity. The company had initially featured in the list of additions in MSCI's May 2026 review, before being dropped from the final list.

The global index provider clarified that under its methodology, stocks placed under India's Short-Term or Long-Term Additional Surveillance Measure (ASM) lists are not eligible for inclusion in the Investable Market Index. The changes will come into effect after the market closes on 29 May 2026.

Who Got In, Who Got Out

While Adani Energy Solutions missed out, four other Indian names did make the cut in the MSCI Global Standard Indexes. Federal Bank, Indian Bank, Multi Commodity Exchange of India (MCX), and National Aluminium Company (NALCO) have been added.

On the other side, four companies were removed from the indices. These include Hyundai Motor India, Jubilant FoodWorks, Kalyan Jewellers, and Rail Vikas Nigam.

Weightage Reshuffle

Beyond the additions and deletions, the review also tweaked the weightage of several existing constituents. Stocks set to see their weightage rise in the MSCI Standard Index include Adani Power, Bharat Petroleum Corporation, FSN E-Commerce Ventures, Oracle Financial Services Software, and Trent.

Around 75 stocks, however, will see their weightage come down. Some of the bigger names on that list are Bajaj Finance, Coal India, Hindustan Unilever, Infosys, Oil and Natural Gas Corporation, Tata Consultancy Services, UltraTech Cement, Hindustan Aeronautics, Mahindra & Mahindra, and Nestlé India.

MSCI Smallcap Index Sees Larger Churn

The small-cap basket saw a more active reshuffle, with 14 companies added and 29 removed during the review. The new additions to the MSCI Global Small Cap Indexes include Aditya Infotech, Anthem Biosciences, Anupam Rasayan India, Bluestone Jewellery, Emmvee Photovoltaic, Escorts Kubota, Fractal Analytics, Indian Renewable Energy Development Agency, Jain Resource Recycling, Jubilant FoodWorks, Kalyan Jewellers, PhysicsWallah, Pine Labs, and Tenneco Clean Air India.

The small-cap changes will also take effect after the close of trade on 29 May 2026.

Also Read - SEBI Proposes Doubling Position Limits For Agricultural Commodity Derivatives, Caps Penalties

Why MSCI Reviews Matter

MSCI's index changes tend to be watched closely by market participants because passive funds tracking these indices are required to adjust their portfolios accordingly. Inclusion typically draws fresh inflows into the stock, while exclusion or a weightage cut often triggers outflows. That is one reason MSCI's decisions, even if technical in nature, can move share prices in the days leading up to and following the rebalancing.

Sources:

Moneycontrol

Financial Express