MSCI Trading Volume Surges 38.32% to 3.48 Billion, Ranks 286th as Indian Stocks Attract $408 Million in Passive Funds

On May 15, 2025, MSCI's trading volume reached 3.48 billion, marking a 38.32% increase from the previous day. This surge placed MSCI at the 286th position in terms of trading volume for the day. MSCI's stock price rose by 1.56%, marking its second consecutive day of gains, with a total increase of 2.05% over the past two days.

MSCI has announced significant changes to its indices, which are expected to impact the flow of funds into Indian markets. The company has included two prominent Indian companies, Coromandel International and Nykaa, in its Global Standard Index, effective from May 30, 2025. This move is anticipated to attract approximately $408 million in passive fund inflows.

Coromandel International, a leading fertilizer manufacturer, is expected to see passive inflows worth $252 million. Meanwhile, Nykaa, a popular beauty and fashion retailer, is projected to receive $199 million in passive fund inflows. These additions are part of MSCI's quarterly index review and rebalancing process, aimed at reflecting changes in the underlying equity markets in a timely manner.

The inclusion of these two Indian stocks in the MSCI Global Standard Index is particularly noteworthy given the current foreign money exodus from Indian equities. This move is expected to provide some relief to the Indian markets, with estimates suggesting a net inflow of nearly $200 million from foreign funds. This development comes at a time when Indian equities have been experiencing volatility due to various factors, including economic growth concerns and geopolitical tensions.