look news india
Mumbai: China has again regained the top position in the MSCI Emerging Market Investable Market Index (MSCI EM IMI). India had achieved this position by defeating China in August this year, but after a gap of two months, China regained this position at the end of October.
China’s weighting in the main EM gauge increased from 21.58 at the end of August to 24.72 at the end of October. According to the data received, India’s weightage has decreased from 22.27 percent to 20.42 percent during this period.
The reversal comes after a sharp rise in equities due to massive stimulus announced by the Chinese government to support the country’s economy. The Shanghai Composite Index is up 25 percent from its September low, while India’s benchmark Sensex is down eight percent from its September peak.
China has also regained its fifth position in the MSCI All Country World IMI (ACWI IMI) index. In August, China dropped from this position to seventh place after France and India. However, at the end of October, China’s weightage in this index increased from 2.24 percent to 2.67 percent.
Now India has come to sixth place and France to seventh place in this index. Considering that India’s market share is less than half that of China, India’s overtaking of China in August is still considered a major achievement.
Currently, China’s market cap is $12 trillion while India’s is around $5.27 trillion.
The last decade has seen an increase in India’s weighting in most global indices due to the huge rally in Indian equities and massive FPI inflows.
