The upcoming FTSE Russell index review, scheduled to take effect on June 24, 2025, is expected to trigger significant market movements, especially in Indian equities. The quarterly reshuffle will include a number of high-profile Indian companies across large-cap, mid-cap, and small-cap segments, with an estimated passive inflow of over \$313 million.
Among the key additions is Vishal Mega Mart, which is set to enter the FTSE Global Mid Cap Index with a projected passive inflow of around \$115 million. The company’s strong quarterly performance and consistent expansion in the retail segment have contributed to this significant inclusion.
Newly listed companies like Hyundai Motor India, Waaree Energies, and Swiggy will join the FTSE Global Large Cap Index. Hyundai Motor India is expected to receive inflows of \$56 million, Waaree Energies around \$49 million, and Swiggy approximately \$32 million. NTPC Green Energy, another recent IPO, is also joining the large-cap list with an expected inflow of \$22 million.
The reshuffle reflects FTSE’s confidence in the performance and potential of these companies, many of which recently went public and have shown strong market interest. Waaree Energies, for example, has surged over 80 percent since its listing in April 2024. NTPC Green Energy has reported robust revenue growth and a notable increase in net profit for the fourth quarter of FY25. Vishal Mega Mart has seen consistent growth in quarterly revenue despite a slight slowdown in profit.
In the small-cap category, companies such as OneSource, Afcons Infrastructure, SAI Life Sciences, and Inventurus Knowledge will also be added to FTSE indices. These companies are likely to attract inflows ranging from \$7 million to \$15 million.
While these inclusions are expected to result in substantial inflows from passive funds and index-tracking ETFs, some companies will face weight reductions or exclusions. ITC Hotels, for instance, will be downgraded from the large-cap to mid-cap index. Other companies expected to see reduced weights include Titan, Adani Enterprises, JSW Steel, Asian Paints, and Shree Cement. On the other hand, stocks like Reliance Industries, Bharti Airtel, Mahindra & Mahindra, and Power Grid will gain increased weights and are likely to benefit from additional buying.
Market analysts anticipate noticeable price movements in the affected stocks as funds tracking FTSE indices adjust their portfolios to align with the updated composition. These changes not only boost visibility for the included companies but also open doors for greater foreign institutional investment.
Investors are advised to closely watch the market trends in the week following the implementation date, especially between June 24 and June 28, when passive inflows are expected to materialize. The FTSE rebalancing serves as a barometer for global investor sentiment toward Indian equities and highlights the growing prominence of newly listed firms on the global stage.