India's weight on key MSCI equity index rises to record high; $3 billion inflows likely
- India's weight on the MSCI Global Standard index, has risen to another record high.
Highlights:
- MSCI Global Standard index, which tracks emerging market stocks, has risen to another record high, which is likely to attract inflows of about $3 billion into its equity markets.
- India has further narrowed the gap with China on the key MSCI index.
- While China's weightage on the index will fall to 24.2% from 24.8%, India's weight will rise to 19.8% from 19.2%.
- India's weight could likely rise above 20% by the end of November.
- This will lead to about $2.7 billion-$3 billion inflows into India, according to Nuvama.
- HDFC Bank, India's top private lender and the heaviest stock in the benchmark NSE Nifty 50, will see an increase in its weightage, triggering potential inflows of $1.8 billion.
- Given the current pace and momentum in domestic equities, India could potentially cross 22% weightage by year-end" on the MSCI index
- About 25 stocks will be added to the MSCI India Small-cap index. They will see likely inflows of $3 million-$26 million
Prelims Takeaway
- MSCI equity index