MSCI rejig sparks ₹6,516 crore FPI selloff; Swiggy and Waaree added

MSCI index changes triggered FPI selloff worth Rs 6,516 crore as Sona BLW and Thermax were dropped, though inclusions like Swiggy and Waaree partly cushioned the outflows

Foreign portfolio investors (FPIs) sold Indian equities worth ₹6,516 crore on Tuesday, with a large part of the outflows driven by the latest MSCI index rebalancing.

 

The rejig saw a reduction in weightages of stocks such as Eternal (formerly Zomato), Asian Paints, and Jindal Steel & Power, while Sona BLW Precision and Thermax were dropped from the MSCI Global Standard Index.

 

This prompted active selling by FPIs, who had to adjust positions in line with the changes announced by the global index provider earlier this month. 

 

However, the outflows were partly cushioned by the inclusion of Swiggy, Vishal Mega Mart, Hitachi Energy, and Waaree Energies in the index. These counters entered on the back of sharp rallies or the expiry of lock-in periods in shareholding, which improved their eligibility for inclusion.

 

As part of the MSCI Global Small Cap Index changes, 15 companies were added and six were removed. New entrants include Belrise Industries, Brainbees Solutions, and Capri Global, while Bharat Dynamics, Easy Trip Planners, Hikal, and Jain Irrigation were among those excluded.

 

The MSCI-driven churn comes at a time when FPIs have already been aggressively paring exposure. So far in August, they have pulled out over ₹23,255 crore from domestic equities, following withdrawals of ₹17,741 crore in July. Persistent selling has kept market sentiment under pressure despite strong domestic liquidity.