BENGALURU – Index supplier MSCI raised India‘s weightage in its Global Standard (Emerging Markets) index to a historic excessive of 18.2% following its February overview, and the adjustments will come into impact after market shut on Feb. 29. India’s weightage within the index has almost doubled since November 2020.

The climb may be attributed to India’s standardized overseas possession restrict (FOL) in 2020, the sustained rally in home equities and relative underperformance of different rising markets, particularly China, Nuvama Alternative & Quantitative Research stated in a notice.

India has the second-highest weightage within the MSCI Global Standard index, after China.

With constant circulate from home institutional traders and regular overseas portfolio traders’ 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 stocks to its Global Standard index with no deletions in its February overview. In distinction, the index supplier deleted 66 Chinese shares whereas including 5.

State-owned lenders Punjab National Bank and Union Bank of India had been added to the large-cap index, whereas Bharat Heavy Electricals and NMDC had 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 overview.

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