India’s Rise to Prominence in Global Markets
A significant shift is underway in the global investment landscape, with India poised to narrow the gap with China in the MSCI Global Standard Index. In a move that underscores India’s growing importance, MSCI has added five new Indian companies to its index, bringing the total number of Indian stocks to 156.
Indian Stocks Gain Prominence
The latest additions to the index include Voltas, Oberoi Realty, BSE, Kalyan Jewellers, and Alkem Laboratories. This development is expected to attract a significant influx of passive investments into India’s equity markets, with estimates suggesting an inflow of around $2.5 billion.
Narrowing the Gap with China
India’s weightage in the MSCI Global Standard Index is set to increase to a record 19.8%, up from 19.3% previously. This narrowing of the gap with China, which has slipped to 26.8% from 27%, is a testament to India’s growing economic clout.
Indian Markets See Inflows
The previous MSCI rebalancing in August saw seven stocks added to the index, resulting in inflows of around $3 billion into Indian equities. With the latest additions, the Indian markets are expected to see continued interest from investors.
Bullish on India
“We remain extremely bullish on India, especially with active participation from mutual funds and high net worth individuals/retail investors, and anticipate many more inclusions in the emerging markets index,” said Abhilash Pagaria, head of Nuvama research.
Weightage Increases for Existing Stocks
Seven existing stocks, including HDFC Bank and Tata Power, saw an increase in their weightage. HDFC Bank is now the highest-weighted Indian stock in the MSCI indices at 7.08%, surpassing Reliance Industries’ 6.08%.
MSCI Small Cap Index Additions
In addition to the main index, around 13 firms, including Eureka Forbes, Indegene, and PC Jeweller, were added to the MSCI Small Cap Index, bringing the total number of small-cap stocks to 525.
A New Era for Indian Markets
The changes to the MSCI Global Standard Index will take effect after the markets close on November 25. As India continues to assert its presence on the global stage, it’s clear that this is just the beginning of a new era for Indian markets.
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