Updated February 13th, 2024 at 08:19 IST

India's weightage in MSCI Global Standard Index hits record high

India now holds the second-highest weightage in the MSCI Global Standard index, trailing only behind China.

Business Desk
India's weightage in MSCI Global Standard Index hits record high | Image:Freepik
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MSCI Global Standard Index: Index provider MSCI, in its February review, has increased India's weightage in its Global Standard (Emerging Markets) index to a historic peak of 18.2 per cent. 

The adjustments are slated to take effect after market closure on February 29, marking a major surge from India's weightage in November 2020, which nearly doubled.

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The uptick can be attributed to several factors, including India's standardised foreign ownership limit (FOL) in 2020, a sustained rally in domestic equities, and relatively subdued performance in other emerging markets, particularly China, according to Nuvama Alternative & Quantitative Research.

India now holds the second-highest weightage in the MSCI Global Standard index, trailing only behind China. 

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With consistent investment inflows from domestic institutional investors and active participation from foreign portfolio investors, Nuvama anticipates India's weightage to potentially exceed 20 per cent in the MSCI Global Standard index by early 2024.

In its latest review, MSCI incorporated five Indian stocks into its Global Standard index without any deletions. In contrast, the index provider removed 66 Chinese stocks while adding five others.

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Notable additions to the large-cap index include state-owned lenders Punjab National Bank and Union Bank of India, while Bharat Heavy Electricals and NMDC were included in the mid-cap index. 

GMR Airports Infrastructure was transitioned from the small-cap to the mid-cap index.

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Nuvama Alternative & Quantitative Research estimates potential passive inflows of up to $1.2 billion from foreign portfolio investors into standard and small-cap indexes following the February review.

(With Reuters Inputs)

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Published February 13th, 2024 at 08:19 IST