MSCI EM News

Following the US Fed's rate cut and China's aggressive stimulus measures, the CSI 300 index has surged. This rally has pushed China's weight in MSCI's benchmark emerging market index to the level last seen in November 2023.

India has emerged as the largest emerging market in MSCI EM Investable Market Index (IMI). China’s weight in the index has halved since its peak in early 2021.

Dixon Technologies is set to receive the maximum passive inflows worth $257 million, followed by Vodafone Idea at $254 million, according to estimates by IIFL Alternative Research.

An estimated ₹25,000 crore worth HDFC Bank shares will likely be bought by passive Foreign Institutional Investors (FIIs) tracking the index by September 2. The positioning will likely start from August 13 itself.

HDFC Bank’s weight in the MSCI EM Index is approximately 3.8%. If FIIs reduce their holding from 55.50% to below 55%, there could be a significant weight change from 3.8% to 7.2% to 7.5%, potentially leading to inflows of $3.2 billion to $4 billion, Nuvama said.

MSCI Global Standard Index additions include PB Fintech, Sundaram Finance, NHPC, Phoenix Mills, Indus Towers, Bosch, Jindal Stainless, Solar Industries, Torrent Power, Mankind Pharma, JSW Energy, Canara Bank and Thermax in the MSCI Global Standard Index.

Oberoi Realty, Zydus Lifesciences, Prestige Estates, Thermax, Nykaa parent FSN E-Commerce Ventures, Alkem Laboratories and Steel Authority of India (SAIL) need up to 10% rise to enter the MSCI index.

The MSCI Emerging Markets Currency Index slipped 0.2 percent on April 16 to the lowest its been since December 2023.

India’s share in MSCI Emerging Markets index saw a significant jump over eight years, rising from 7% to 17.1% and is projected to rise further to 20% by early 2024, a recent report from Nuvama Institutional Equities said.