India overtakes China in Morgan Stanley emerging markets IMI

New Delhi: With India overtaking China in terms of weightage in the Morgan Stanley emerging markets IMI, Indian equities could see inflows of about $4.5 billion (Rs 37,000 crore), according to estimates.

This week, Morgan Stanley announced that India has overtaken China in the MSCI Emerging Markets Investable Market Index

(MSCI EM IMI).

The weight of India in MSCI EM IMI stood at 22.27 per cent as compared to 21.58 per cent of China.

India’s heavier weight vis-a-vis China in MSCI IMI stems from the greater small-cap weighting in its basket, official sources said. Post this, Indian equities could witness inflows of about $4-4.5 billion, according to the estimates of

analysts.

“The rebalancing reflects broader market trends. While Chinese markets have struggled on the back of economic headwinds in China, India’s markets have benefitted from favourable macroeconomic conditions,” official

sources said.