MSCI Index Mumbai/IBNS: India's weight on the MSCI Global Standard index has risen to another record high, which is likely to attract inflows of about $3 billion into its equity markets, reports Reuters.
MSCI Global Standard Index captures large and mid-cap representation across 23 Developed Markets (DM) countries, and with 1,429 constituents, the index covers approximately 85 percent of the free float-adjusted market capitalization in each country.
According to reports, with this development, India has further narrowed the gap with China on the key MSCI index.
While China's weightage on the index will fall to 24.2 percent from 24.8 percent, India's weight will rise to 19.8 percent from 19.2 percent, Reuters reported, quoting Nuvama Alternative and Quantitative Research's head Abhilash Pagaria.
As per reports, the changes in the index weights will come into effect after markets close on August 30, while India's weight could likely rise above 20 percent at the end of November.
Reuters reported citing Navuma Alternative and Quantitative Research that this will lead to about $2.7 billion-$3 billion inflows into India.
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