India’s weight in the MSCI Global Standard index has reached a new record, likely bringing around $3 billion into its equity markets. The country’s weight on the index will rise to 19.8% from 19.2%, while China’s will decrease to 20.2% from 25%. These changes will take effect after markets close on August 30, potentially pushing India’s weight above 20% by November.
Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research, anticipates inflows of $2.7 billion to $3 billion into India, with HDFC Bank expected to attract $1.8 billion due to its increased weight. Other companies, including Bharti Airtel and Coal India, will see a boost in their weightage, while Maruti Suzuki and Adani Enterprises will experience reductions.
Additionally, Dixon Technologies, Vodafone Idea, and others will be added to the MSCI Emerging Markets index, while Bandhan Bank will be excluded.