India's weight in key MSCI equity index hits another high, to boost inflows (updated)

Indus Towers

15/05/2024 09:36

(Updates to reflect analyst's revised estimate in paragraph 3)
    By Bharath Rajeswaran
       BENGALURU, May 15 (Reuters) - India's weight in MSCI's
Global Standard index, which tracks emerging market stocks, has
risen to another record high, boosting prospects of more inflows
into its equity markets.  
    With this, India has further narrowed the gap with China on
the index. While China's weightage in the index will fall to 25%
from 25.4%, India's weight will rise to 19% from 18.2%. The
changes, announced on Wednesday, will be effective May 31.
    The May review will lead to about $2 billion - $2.5 billion
inflows into India, Abhilash Pagaria, head of Nuvama Alternative
and Quantitative Research said.
    Consistent flows from domestic institutional investors and
steady participation by foreign investors means that there is
potential for India to surpass 20% weightage in the MSCI Global
Standard index by the second half of 2024, Pagaria said.
    With the May rejig, India's stock count in the MSCI Global
Standard index is at 149, the highest ever for the country.
    India's rising prominence in emerging markets is due to
robust performance of its equities, particularly in the mid-cap
segment, amid the relative underperformance by other emerging
markets, especially China, analysts have said.
    MSCI will add 13 Indian companies, the most among emerging
markets, to the Global Standard Index from May end.
    These include JSW Energy  JSWE.NS , Canara Bank  CNBK.NS ,
Indus Towers  INUS.NS  in the large-cap segment, and Mankind
Pharma  MNKI.NS , Bosch  BOSH.NS , Solar Industries  SLIN.NS ,
NHPC  NHPC.NS , Torrent Power  TOPO.NS , Thermax  THMX.NS ,
Jindal Stainless  JIST.NS  and Sundaram Finance  SNFN.NS  in the
mid-cap index.
    Phoenix Mills  PHOE.NS  and PB Fintech  PBFI.NS  have been
upgraded to the mid-cap index from small-cap by MSCI.
    Berger Paints  BRGR.NS  will be removed from the MSCI index
while Indraprastha Gas  IGAS.NS  and Paytm's parent One 97
Communications  PAYT.NS  have been downgraded to the small-cap
index from the mid-cap index.
    Housing Urban Development Corp  HUDC.NS  and Waaree
Renewable Technologies  WAAE.BO  have been added to the
small-cap index.
    Separately, 29 Indian stocks have been added to the MSCI
Domestic index while 15 have been moved to other categories or
removed.
 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
India narrows gap with China in MSCI Global Standard index    https://reut.rs/3QNLxaF
Additions to MSCI Global Standard index    https://reut.rs/3yimFBw
Potential flows after MSCI Global Standard index rejig    https://reut.rs/4bix3rE
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Mrigank Dhaniwala)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))