CashNews.co
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 rejig in MSCI EM IMI, Indian equities could witness inflows of about $4-4.5 billion, according to analysts’ estimates.
“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.
They said that in the recent past, India has posted a much superior equity market performance, driven by strong macroeconomic fundamentals of Indian economy as well as robust performance by Indian corporates.