India’s stock market recently saw a remarkable recovery, moving its weighting into second place in the MSCI Emerging Markets Index, just behind China.
India’s country weight, which consists of 108 nations, was 14.483% at the end of August, according to figures collated by Bloomberg. With 84 businesses included in the MSCI EM gauge, including the most heavily weighted Taiwan Semiconductor Manufacturing Co., it is only a hair above 14.480% for Taiwan. With approximately a third of the index weights, China kept leading.
According to statistics gathered by Bloomberg, the S&P BSE Sensex in India has increased by 11% this quarter, which is the greatest result among national benchmarks in nations with stock markets worth at least $1 trillion.
“Economic impact of China’s lockdown and the zero-Covid policy is being seen now, while India is emerging stronger, month-by-month,” Rakhi Prasad, an investment manager at Alder Capital. “India’s weight in the emerging markets can be higher, but how much it goes from here will depend on its economy’s performance.”
Indian stocks had the strongest performance in the world between early 2020 and October 2021, driven by a retail investing surge sparked by the pandemic. Foreign investors withdrew a record $33 billion from domestic shares in the nine months leading up to June due to growing worries about the Federal Reserve’s aggressive rate hikes.
This quarter, overseas funds have made a comeback, injecting $7.6 billion and boosting the market. Less than 5% separates the Sensex from a record set in October.
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