JSW Steel is set to experience a notable boost in its MSCI index weightage as part of the February rebalancing exercise scheduled for today at 3 PM. The steel manufacturer is expected to see its weight increase significantly in the global index.

MSCI Rebalancing Impact

The upcoming MSCI February rejig will result in a substantial weight enhancement for JSW Steel. The company is positioned to benefit from increased foreign institutional investment flows following this rebalancing.

Index Inclusion Significance

MSCI rebalancing exercises are closely monitored by global investors as they determine the weightage of stocks in various international indices. The weight increase for JSW Steel indicates the company's growing prominence in the global steel sector and its enhanced attractiveness to international fund managers.

The timing of the rebalancing at 3 PM today marks an important moment for the company's international market positioning. This development is expected to influence trading activity and investor sentiment around JSW Steel shares.

JSW Steel Limited reported consolidated crude steel production of 24.75 lakh tonnes for January 2026, marking a 2% decline from the previous year's production of 25.18 lakh tonnes. The production figures reflect the impact of planned maintenance activities and capacity expansion projects across the company's operations.

Production Performance Analysis

The company's production breakdown reveals mixed performance across different operational segments:

*Including trial run production of 2.11 lakh tonnes

Operational Challenges and Capacity Utilization

The company's Indian operations demonstrated resilience with marginally higher year-on-year production despite significant operational constraints. Blast Furnace 3 (BF3) at the Vijayanagar facility has been under shutdown for capacity upgradation since September 2025, with commissioning expected by the end of Q4 FY26.

This shutdown significantly impacted capacity utilization metrics:

• Capacity utilization for Indian operations excluding BF3 capacity: approximately 93%
• Capacity utilization including BF3 capacity: 85%

US Operations Impact

Production at the USA Ohio operations experienced a substantial decline of 74%, primarily due to a scheduled outage for caster upgrades. The maintenance period extended from December 15, 2025, to January 11, 2026, affecting the facility's contribution to overall consolidated production.

Strategic Infrastructure Development

The ongoing upgradation of BF3 at Vijayanagar represents part of JSW Steel's broader capacity expansion strategy. The Vijayanagar plant serves as the company's largest single-location steel-producing facility in India, with a current capacity of 17.5 MTPA. The company maintains a consolidated crude steel capacity of 35.7 MTPA, including 1.5 MTPA in the US, with domestic crude steel capacity standing at 34.2 MTPA.

JSW Steel's next phase of growth targets consolidated capacity expansion to 48.9 MTPA over the next four years, positioning the company for enhanced market presence and operational efficiency upon completion of current upgradation projects.