MSCI February 2025 Review: Hyundai In, Adani Out of Index

Hyundai becomes the only large-cap Indian addition

MSCI’s February 2025 index review has delivered a clear headline for India: Hyundai Motor India Ltd. has been added to the MSCI Global Standard Indexes. The reshuffle, announced on February 12, 2025, makes Hyundai Motor India the only Indian large-cap stock to be included in this review cycle. The move matters because MSCI Global Standard Indexes are widely tracked by global institutional investors and passive funds.

The same review also removed Adani Green Energy Ltd. from the MSCI Global Standard Index, marking a notable exit from a benchmark that influences global portfolio allocations. The proforma changes announced in the review will be implemented as of the close of February 28, 2025, and will be effective March 3, 2025.

What MSCI announced and when it becomes effective

MSCI said the latest index changes will take effect after the market closes on February 28, 2025. Alongside the constituent changes, MSCI noted it would implement previously postponed adjustments related to Adani Energy Solutions, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF), and Domestic Inclusion Factor (DIF), starting from the February 2025 Index Review.

MSCI also stated it continues to monitor the Adani Group and associated securities, including aspects related to free float, and would issue further communication if appropriate. The statement underscores that index actions can reflect investability criteria, even when MSCI does not provide stock-specific reasons for every inclusion or deletion.

Hyundai Motor India’s MSCI entry and weight increase

Hyundai Motor India’s addition comes with a meaningful index impact. The company’s inclusion in the MSCI Global Standard Indexes also resulted in a weight increase, with reports in the supplied material indicating it recorded the highest weight increase among Indian securities in this rebalancing. MSCI also described Hyundai Motor India as one of the largest additions to the MSCI Emerging Markets Index measured by full company market capitalisation.

Market attention was visible around the announcement. One report in the provided text said Hyundai Motor India shares climbed 3.41% to Rs 1,898.20 on the BSE during morning trade. Another data point cited Hyundai Motor India closing at Rs 1,835.55, down 1.28%.

Adani Green Energy removed from the Global Standard Index

In the same review, Adani Green Energy was deleted from the MSCI Global Standard Index. The supplied material shows sharp attention on the counter following the announcement. One update said Adani Green fell 2.65% intraday to Rs 921.2 on the BSE, while another cited a close at Rs 943.70, down 1.40%. A separate data point in the text said the stock declined 4.95% to Rs 896.90 during morning trade.

MSCI did not provide a specific reason for the deletion in the provided excerpts. However, MSCI’s reference to monitoring free float and its planned implementation of postponed factors for Adani Energy Solutions indicates that investability inputs and index methodology variables remained in focus around the group.

Winners and losers on weight changes among large Indian stocks

Beyond adds and deletes, MSCI’s review changed weights for several widely-held Indian names. The stocks highlighted in the provided material as seeing weight increases in MSCI Standard Indexes included IndusInd Bank, Zomato, Mankind Pharma, Varun Beverages, Torrent Pharmaceuticals, Dixon Technologies (India), PB Fintech, and Voltas.

At the same time, weights were cut for multiple heavyweight constituents, including Adani Green Energy, Reliance Industries, HDFC Bank, Infosys, ICICI Bank, Bharti Airtel, Tata Consultancy Services (TCS), Mahindra and Mahindra (M&M), Larsen and Toubro, and Axis Bank. Separately, the material noted HDFC Bank retained the highest weightage among Indian stocks in MSCI indexes, followed by Reliance Industries, ICICI Bank, Infosys, and Bharti Airtel.

India’s overall MSCI weight and EM ranking shift

The review also changed India’s aggregate weight in MSCI Global Standard Indexes. As per the provided information, India’s weight is set to increase to 19% from 18.8% from February 28 onwards. Yet, the same update said India slipped to third position in weightage across emerging markets, with Taiwan moving into the second spot.

China continued to hold the highest weight among emerging markets. One excerpt noted China’s weightage at 27.1% from 27% after the February 2025 MSCI review.

Small-cap reshuffle: additions and exclusions

The MSCI India Domestic Small-Cap Index also saw a reshuffle. As per the supplied text, 20 stocks were added and 17 were removed. Additions highlighted included Afcons Infrastructure, Akums Drugs and Pharma, Ola Electric Mobility, Jyoti CNC Automation, and Sundaram Clayton. Another list in the material expanded the additions to include names such as Allied Blenders, ASK Automotive, Black Box, Cartrade Tech, E2E Networks, Greaves Cotton, Kovai Medical Center and Hospital, Manorama Industries, Niva Bupa Health Ins, Pearl Global Industries, Shaily Engineering, TBO Tek, V2 Retail, Websol Energy Systems, and Zaggle Prepaid Ocean Services.

On the exclusion side, the provided text cited Advanced Enzyme Technologies, Bajaj Hindusthan Sugar, Mahindra Logistics, and Spandana Sphoorty Financial among those removed. A longer list in the same material also included Balmer Lawrie and Co, Bharat Bijlee, DCB Bank, Fineotex Chemical, Jai Corporation, Jamna Auto Industries, La Opala RG, Magellanic Cloud, Sanghvi Movers, Shivalik Bimetal Controls, Sula Vineyards, Sun Pharma Advanced RSCH, and West Coast Paper Mills.

Key facts table from the February 2025 review

Market impact: why index changes matter

MSCI inclusions and deletions can trigger portfolio rebalancing by funds that track these indices. That can affect short-term demand and supply around the implementation date, particularly near the close on the effective day when passive funds align holdings. This is one reason Hyundai Motor India and Adani Green Energy were flagged as stocks to watch on February 12, 2025, in the supplied coverage.

The provided text also included an estimate that Hyundai Motor India’s inclusion could attract an inflow of approximately $157 million from passive funds tracking the index. While actual flows can vary by fund behaviour and tracking method, the figure captures why MSCI events are followed closely by both institutional and retail market participants.

Conclusion

MSCI’s February 2025 review delivered a narrow but significant change for Indian large caps, with Hyundai Motor India entering the MSCI Global Standard Indexes and Adani Green Energy exiting. The same review reshuffled weights across major Indian constituents and refreshed the MSCI India Domestic Small-Cap Index with multiple additions and exclusions. The implementation at the close of February 28, 2025, will be the next key milestone as index-tracking funds execute the announced changes.