Mumbai: Eternal Ltd., Adani Energy Solutions Ltd. and Laurus Labs Ltd. are expected to be among the biggest beneficiaries of the upcoming MSCI India Standard Index review, according to Axis Capital. The brokerage believes these stocks could attract significant passive inflows if they are included or receive a higher weight in the index during the August 2026 rebalance.

MSCI is scheduled to announce the changes to its India Standard Index on August 12, 2026, after market hours. The revised index composition will come into effect from September 1, 2026. Investors are closely tracking the review, as index changes often lead to substantial buying or selling by passive funds that track MSCI benchmarks.

Eternal likely to attract highest passive inflows

Axis Capital expects Eternal Ltd. to receive a higher weight in the MSCI India Standard Index, making it the biggest beneficiary of the upcoming rebalance.

According to the brokerage, Eternal could attract passive inflows worth nearly $520 million (around Rs 5,000 crore). This is estimated to translate into buying of approximately 17.43 crore shares, making it the largest passive flow event among the stocks under review.

A higher index weight generally results in increased allocations from exchange-traded funds (ETFs) and other passive investment vehicles that replicate the MSCI India Standard Index.

Adani Energy Solutions, Laurus Labs likely to be included

Axis Capital has assigned a high probability to the inclusion of Adani Energy Solutions Ltd. and Laurus Labs Ltd. in the MSCI India Standard Index.

If included, Laurus Labs could attract passive inflows of around $410 million (approximately Rs 3,942 crore).

Meanwhile, Adani Energy Solutions is expected to receive passive inflows worth nearly $260 million (around Rs 2,501 crore).

The brokerage’s projections are based on the companies’ current market capitalisation, free-float levels and MSCI’s index inclusion methodology.

Inclusion in the benchmark index is generally viewed positively by investors because it improves a stock’s visibility among global institutional investors while boosting passive fund participation.

Stocks facing possible exclusion

While some companies are expected to benefit, others may face the risk of being dropped from the index.

Axis Capital expects SBI Cards and Payment Services, Astral Ltd., and Balkrishna Industries to face potential exclusion during the August review.

If removed from the index:

  • SBI Cards could witness passive outflows of about $110 million (around Rs 1,058 crore).
  • Astral may see outflows of nearly $102 million (around Rs 981 crore).
  • Balkrishna Industries could face outflows of around $122 million (approximately Rs 1,173 crore).

However, the brokerage noted that Balkrishna Industries remains a borderline case, meaning its inclusion or exclusion will depend on market movements before the final cut-off.

Other stocks remain under watch

Axis Capital also identified Glenmark Pharmaceuticals and Coforge as potential inclusion candidates.

According to the brokerage, Glenmark could qualify if its share price rises by around 10 per cent before MSCI’s cut-off date. Similarly, Coforge may become eligible with a price increase of approximately 6 per cent during the same period.

The brokerage said the final outcome remains dependent on market performance leading up to MSCI’s review.

Why MSCI reviews matter

MSCI’s index reviews are closely monitored by domestic and international investors because they directly influence capital flows from passive investment funds.

When a stock is added to the index or receives a higher weighting, ETFs and index-tracking funds are required to purchase shares to match the revised benchmark. Conversely, stocks removed from the index often experience selling pressure due to mandatory exits by passive funds.

Although these changes can lead to short-term volatility, analysts note that long-term stock performance continues to depend on earnings growth, business fundamentals and broader market conditions.

Final decision due in August

The final composition of the MSCI India Standard Index will depend on the price cut-off, which can fall on any of the last ten trading sessions of July.

As a result, the list of additions, exclusions and weight adjustments may change before the official announcement on August 12.

Investors are expected to keep a close watch on the shortlisted stocks in the coming weeks as market movements ahead of the cut-off date could influence the final outcome of the MSCI August 2026 review.