India has overtaken China in the international index. So India can earn a profit of Rs 37 billion.
Every time India succeeds, China starts sighing. Something similar has happened this time too. India has overtaken China in terms of value weighting in Morgan Stanley’s MSCI Emerging Markets Investable Index (MSCI EM IMI) for September 2024. What is special is that this incident happened for the first time in history.
Giving this information, official sources said that India’s weighting in MSCI EM IMI was 22.27 per cent against China’s 21.58 per cent. Analysts estimate that after this change in MSCI EM IMI, an investment of around US$ 4.5 billion or Rs 37,000 crore may enter the Indian stock market. This clearly means that we may see a rally in the stock market in the coming days.
24 countries and 3355 actions included
The MSCI IMI is comprised of 3,355 stocks, including large, mid-cap and small companies. This index includes stocks from 24 emerging market countries. The main MSCI EM index (standard index) consists of large and mid-cap companies, while the IMI is made more comprehensive with large, mid-cap and small-cap companies. Sources said the higher weighting of India compared to China in the MSCI IMI is due to a higher weighting capacity of companies with smaller market capitalization.
read this too
China is struggling
He said this shift reflects broader market trends. China’s markets are struggling due to adverse economic conditions, while Indian markets have benefited from favourable macroeconomic conditions. He said India has performed better in the stock market thanks to a strong economic foundation and the excellent performance of Indian business.
India’s situation has improved
Sources said India’s situation improved due to 47 per cent rise in foreign direct investment (FDI) by early 2024, lower crude oil prices and substantial foreign portfolio investment (FPI) in Indian debt markets. It said between March 2024 and August 2024, India’s weighting in the MSCI EM rose from 18 per cent to 20 per cent, while China’s weighting declined from 25.1 per cent to 24.5 per cent during the same period.
