India’s hits new record on MSCI index

India has increased its weight to an all-time high of 18.2 per cent in MSCI’s Global Standard index, bringing it closer to China’s weightage of 25.4 percent, Reuters reported on Tuesday.

This increase could let India witness more than $1.2 billion of passive foreign flows after the February review, according to a note Nuvama Alternative & Quantitative Research on Tuesday.

MSCI’s revisions will come into effect after market close on February 29. India’s state-owned lenders Punjab National Bank and Union Bank of India were added to the large-cap category.

While, Bharat Heavy Electricals, nuclear power firm, and NMDC, an iron ore company, were included in the mid-cap category. GMR Airports Infrastructure was moved to the mid-cap category from small-caps.

The convergence of weights between Indian and Chinese stocks has intensified since August 2020, when China’s weightage was five times that of India’s.