Emerging Market

At the interbank foreign exchange, the rupee opened at 90.91 and lost ground, touched an intraday low of 91.06, and finally ended the day at an all-time low of 90.97 (provisional) against the American currency.

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.

Taiwan and India now command more than 19 per cent weighting each in the MSCI EM Index, eyes China's 22.8 per cent position, reported Bloomberg. The rise of India and Taiwan is allowing investors to better diversify by betting on artificial intelligence chipmakers and the infrastructure boom.

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.

India will have a 1% weight in the JPMorgan EM Bond index, which will gradually rise to 10% over a 10-month period. The inclusion is estimated to bring $20-22 billion of inflows into the India bond market.

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.