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India’s weightage in MSCI EM index to rise

Morgan Stanley opined that India’s weightage in the MSCI Emerging Market index is set to rise up to 9.6% from 8.9%. This has been attributed to the Finance Minister’s confirmation on increasing the statutory foreign portfolio investment limit in a company from 24% to sectoral foreign investment limit effective April next year.

“Using the current list of constituents, we expect MSCI India’s weight to rise by about 70 bps (basis points) in the semi-annual index review of May 2020, implying passive flows of US $2.5 bn (billion),” the foreign brokerage said.