Container Corp and Tata Elxsi Shares Fall Following MSCI Global Index Exclusion

Shares of Container Corporation of India Ltd. and Tata Elxsi Ltd. traded lower on Thursday, marked by significant declines, following their removal from the MSCI Global Standard Index. Container Corp shares saw a dip of up to 4.07%, while Tata Elxsi shares fell by 2.06%. This exclusion is expected to lead to substantial fund outflows, with Nuvama Alternative & Quantitative Research estimating outflows of up to $162 million from index-tracking funds. Both companies have underperformed the broader market this year, with Container Corp shares down 17% and Tata Elxsi down 23%, compared to an 8% rise in the Nifty. The MSCI rejig also saw other stocks added to the index, and Container Corp and Tata Elxsi included in the MSCI India Domestic Small Cap Index. Tata Elxsi also reported a 32.5% year-on-year decline in net profit for the second quarter of FY26, while Container Corp reported an increase in total throughput.

**Impact** The removal from a prominent global index like the MSCI Global Standard Index typically leads to selling pressure from passive funds that track the index. This can negatively affect the stock prices in the short term. While inclusion in a smaller index like the MSCI India Domestic Small Cap Index might offer some balance, the impact of being dropped from a larger, more widely followed index is generally more significant for investor sentiment and fund flows. Rating: 7/10

**Definitions** **MSCI Global Standard Index**: A widely recognized benchmark that includes a broad range of large and mid-cap stocks from developed markets, representing a significant portion of the global equity market. For India, it serves as a benchmark for a segment of the Indian equity market. **Outflows**: Refers to the movement of money out of an investment fund. When a stock is removed from an index, funds that track that index must sell the stock, leading to outflows from those specific holdings. **Throughput**: The total volume of goods or services handled or processed within a specified period. For Container Corp, it measures the total number of shipping containers moved. **TEUs (Twenty-foot Equivalent Units)**: A standard unit of measurement used to quantify cargo capacity in shipping. It is equivalent to the internal volume of a 20-foot long shipping container. **EXIM (Export-Import)**: Refers to the trade activities involving the movement of goods and services across international borders, encompassing both exports and imports. **YoY (Year-on-Year)**: A method of comparing data from the current period to the same period in the previous year to identify trends and growth.