London February 13 2024: Index provider MSCI raised India's weightage in its Global Standard index to an all-time high of 18.2% on Tuesday, which could lead to inflows of about $1.2 billion, analysts said.
The rise, which comes after MSCI's February review, opens new tab, will come into effect after market close on Feb. 29.
India's weightage in the index has nearly doubled since November 2020. It is currently at 17.9%.
The gain can be attributed to a sustained rally in domestic equities and relative underperformance of other emerging markets, especially China, Nuvama Alternative & Quantitative Research said in a note.
India has the second-highest weightage in the MSCI Global Standard index, after China.
Consistent flows from domestic institutional investors and steady foreign portfolio investor participation could lead to India surpassing a 20% weight in the MSCI Global Standard index by early 2024, Nuvama added.
MSCI added five Indian stocks to its Global Standard index and did not move any out. In contrast, the index provider removed 66 Chinese stocks while adding five.
India's state-owned lenders Punjab National Bank (PNBK.NS), opens new tab and Union Bank of India (UNBK.NS), opens new tab were added to the large-cap index, while Bharat Heavy Electricals (BHEL.NS), opens new tab and NMDC (NMDC.NS), opens new tab were included in the mid-cap index. GMR Airports Infrastructure (GMRI.NS), opens new tab was moved to the mid-cap index from the small-cap one.