India Gains Weight in MSCI Emerging Markets Benchmarks

Why in news

India's weight in MSCI Emerging Markets benchmarks increased due to stable market performance relative to South Korea and Taiwan.

Background

India's weight in the iShares MSCI Emerging Markets Ex China ETF increased by 116 basis points. This shift reflects relative country performance rather than new capital inflows into India.

Facts for Prelims

• FactiShares MSCI Emerging Markets Ex China ETF saw a 116-basis-point increase in India's weight.
• FactAmundi MSCI Emerging Ex China UCITS ETF saw a 113-basis-point increase.
• FactXtrackers MSCI Emerging Markets UCITS ETF saw a 99-basis-point increase.
• FactIndia's weight declined by 540-to-998 basis points in the previous 12 months.

For Mains

Q. Discuss the factors influencing India's position in global emerging market benchmarks and its implications for Foreign Portfolio Investment (FPI).

Dimensions to cover in your answer

• relative market stability
• impact on FPI flows
• global investor sentiment
• diversification of emerging markets

Keywords: capital markets · benchmarks · portfolio investment · market volatility · emerging economies

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