In a significant move, India will see its weight in the MSCI Emerging Markets Index rise from 19.3% to 19.8% in 2024, leading to an estimated $2.5 billion in passive foreign inflows. This increase is largely due to notable upgrades for several Indian companies, including Kalyan Jewellers India Ltd., Voltas Ltd., and BSE Ltd. With no Indian stocks removed, India's total representation in the index expands to 156, and an additional 13 Indian stocks have been added to the MSCI Small-Cap Index. This surge in representation not only boosts India's weight in the index but also signals potential for further growth and upgrades in the future, solidifying its position in global markets.
MSCI Index: India's Weight to Increase, Paving Way for Foreign Inflows
In a significant move that underscores India's growing prominence in global markets, the Morgan Stanley Capital International (MSCI) has announced an increase in India's weight in its Emerging Markets Index.
Background
The MSCI Emerging Markets Index is a widely-tracked benchmark that represents the performance of emerging market stocks from various countries around the world. India has been a part of the index since 1995, and its weight in the index has steadily increased over the years.
Recent Increase
According to MSCI's latest announcement, India's weight in the Emerging Markets Index will rise from 19.3% to 19.8% in 2024. This increase is primarily attributed to notable upgrades for several Indian companies, including Kalyan Jewellers India Ltd., Voltas Ltd., and BSE Ltd.
Positive Impact
The increase in India's weight is expected to bring about several positive developments:
Top 5 FAQs
1. What are the reasons for India's increased weight in the MSCI Emerging Markets Index? Answer: The increase is primarily due to notable upgrades for several Indian companies and the addition of new Indian stocks to the index.
2. How much foreign inflow is expected from the weight increase? Answer: Approximately $2.5 billion in passive foreign inflows is estimated.
3. Which Indian companies received upgrades that contributed to the weight increase? Answer: Kalyan Jewellers India Ltd., Voltas Ltd., and BSE Ltd.
4. What are the implications of the weight increase for Indian stocks? Answer: It signals potential for further growth and upgrades in the future.
5. How does India's increased weight compare to its previous weight? Answer: The new weight of 19.8% represents an increase from the previous weight of 19.3%.
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