"India's MSCI Weight Hits New High: Expect More Equity Inflows"

India’s significance in the MSCI Global Standard index, tracking emerging market stocks, has reached a new pinnacle, signaling potential for increased inflows into its equity markets.

India's weight in key MSCI equity index hits another high

In the latest update, India’s weight in the MSCI index has surged to 19%, inching closer to China’s 25%. This rise is expected to attract approximately $2 billion in inflows by the end of May.

With 13 Indian companies set to join the Global Standard Index, India’s stock count in the MSCI index is at an all-time high of 149, showcasing the country’s growing prominence in emerging markets.

Analysts predict that India’s weightage in the MSCI index could surpass 20% by the second half of 2024, driven by consistent flows from domestic and foreign institutional investors.

This surge in India’s MSCI weight is attributed to the robust performance of its equities, particularly in the mid-cap segment, compared to other emerging markets like China.

The addition of prominent Indian companies such as JSW Energy, Canara Bank, and Mankind Pharma to the Global Standard Index further solidifies India’s position in the global equity landscape.

As India continues to strengthen its foothold in emerging markets, investors can anticipate further momentum in equity inflows, bolstering the country’s economic prospects.