India's rise in global equity benchmarks sees it surpassing China in the MSCI AC World IMI. Indian stocks now at 2.35% compared to China's 2.24%, highlight Mumbai's robust equities and local stock presence. The diverse MSCI AC World IMI includes 8,815 constituents from 23 developed and 24 emerging markets. India's current sixth position is set to advance, potentially overtaking France and Canada for the fourth spot. Analysts commend India's performance, with a 23% surge in the MSCI India Index, contrasting China's 0.3% increase.
India continues its upward trajectory in global equity benchmarks, achieving another milestone by surpassing China in the MSCI AC World Investable Market Index (IMI). With Indian stocks now accounting for 2.35% compared to China's 2.24%, this shift reflects the sustained strength of equities in Mumbai and the growing presence of local stocks in these indices.
The MSCI AC World IMI amalgamates a diverse range of large, mid, and small-cap stocks across 23 developed markets and 24 emerging markets, comprising a total of 8,815 constituents.
While the United States leads the index with a dominant 63% weight, followed by Japan, the UK, Canada, and France, India's current sixth position is poised for advancement. Analysts predict that India is on track to surpass France and Canada in the rankings, potentially securing the fourth spot in the index.
Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research, remarked, "Indian equities have showcased an impressive performance, propelling them past China in the MSCI AC World IMI."
India's recent bullish trend has significantly enhanced its presence in MSCI indices. The MSCI India Index has surged by 23% this year, a stark comparison to the modest 0.3% increase in the MSCI China Index. Meanwhile, the MSCI EM has seen a rise of 6.52% during the same period. This exceptional performance has led to more Indian companies being included in both the MSCI EM and MSCI IMI indices, while the weighting of underperforming Chinese stocks has been adjusted downward.
Although India's weight in the MSCI Emerging Market Index still trails behind that of China, with domestic stocks accounting for 20.7% versus China's 23.74%, India's resurgence in the global rankings is evident. India reclaimed the second spot in the index last November, surpassing Taiwan.
Pagaria expressed optimism about India's potential to become the leading country in the MSCI EM cohort.
In a recent development, the MSCI India Domestic Small Cap Index added 25 new stocks to its portfolio, further underscoring the country's growing influence in global equity markets
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