September 18, 2024
New Delhi, India
MSCI IMI Gauge
India has emerged as the largest emerging market in the MSCI Investable Market Index (IMI), surpassing China for the first time, according to a Morgan Stanley report. This achievement is expected to attract foreign fund inflows of ₹37,000 crore to Indian equities.
Key Highlights:
- India’s Weightage on MSCI EM IMI: As of August 30, India’s weightage was at 21.41%, slightly below China’s 21.96%. However, India overtook China this month, buoyed by strong gains in the stock market despite high valuations.
- Market Gains Driving Leadership: India’s leadership position in the MSCI IMI gauge had been anticipated for some time, as the country consistently narrowed the gap with China since 2020. China’s weightage peaked in 2021, but it has since fallen by half due to factors like the COVID-19 pandemic and an economic slowdown.
- Global Ranking: India is now the sixth largest market globally, just behind France, according to Morgan Stanley.
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Stock Market Performance:
- Record-High Levels: Indian stock markets have been trading at record-high levels, with the SENSEX rising by 14.8% and the broader NIFTY50 gaining over 16% in 2024 so far.
- Foreign Institutional Investors (FIIs): Despite being net sellers earlier this year, FIIs turned net buyers in September, contributing ₹15,300 crore to Indian equities in the cash segment this month.
India’s rise to the top of the MSCI EM IMI gauge marks a significant milestone, reflecting the country’s robust stock market performance and improving economic prospects. With increased foreign fund inflows expected, India is set to strengthen its position as a global market leader.
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