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BENGALURU (Reuters) – Index supplier MSCI raised India’s weightage in its Global Standard (Emerging Markets) index to a historic excessive of 18.2% following its February assessment, and the modifications will come into impact after market shut on Feb. 29.
India’s weightage within the index has practically doubled since November 2020.
The climb might be attributed to India’s standardized international possession restrict (FOL) in 2020, the sustained rally in home equities and relative underperformance of different rising markets, particularly China, Nuvama Alternative & Quantitative Research mentioned in a observe.
India has the second-highest weightage within the MSCI Global Standard index, after China.
With constant circulation from home institutional buyers and regular international portfolio buyers’ participation, there’s potential for India to surpass a 20% weight within the MSCI Global Standard index by early 2024 itself, Nuvama added.
MSCI added 5 Indian shares to its Global Standard index with no deletions in its February assessment. In distinction, the index supplier deleted 66 Chinese shares whereas including 5.
State-owned lenders Punjab National Bank and Union Bank of India have been added to the large-cap index, whereas Bharat Heavy Electricals and NMDC have been included into the mid-cap index. GMR Airports Infrastructure was moved to the mid-cap index from small-cap.
According to Nuvama Alternative & Quantitative Research, India may witness as much as $1.2 billion FPI passive inflows to the usual and small-cap indexes after the February assessment.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)
By Bharath Rajeswaran
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