India Surpasses China in MSCI Emerging Markets Index: Key Insights
| Aspect | Details |
|---|---|
| Index | Morgan Stanley Capital International (MSCI) Emerging Markets Investable Market Index (EM IMI) |
| India's Weightage | 22.27% (surpassed China's 21.58%) |
| Market Performance | India's equity market showed strong performance due to macroeconomic fundamentals and corporate earnings. |
| Key Factors | 47% rise in foreign direct investment, decreasing Brent crude prices, significant foreign portfolio investment in Indian debt markets. |
| Index Rebalancing | India's weight in MSCI EM IMI increased in September 2024, benefiting from higher small-cap component. |
| Inflows Projection | $4-4.5 billion expected into Indian equities due to index rejig. |
| MSCI EM Index Weight | India's weight rose from 18% to 20% between March and August 2024; China's weight declined from 25.1% to 24.5%. |
| Regional Standing | Morgan Stanley ranks India as a top investment choice in the Asia-Pacific region, behind Japan. |