India overtakes China to reach the top in the index of investable markets
New Delhi| India has overtaken China to top the Investable Markets Index for Emerging Markets released by MSCI. The country with the world’s fastest growing economy can also leave China behind in the overall index. MSCI is an American financial company that releases this index. 24 countries have been included in the category of emerging markets and the index has been prepared on the basis of data from 3,355 large, medium and small companies. These companies cover approximately 99 per cent of the total free float-adjusted market capitalization in all 24 countries.
Global brokerage firm Morgan Stanley said in a note that the increase in index weight could be a sign of greater enthusiasm or “due to fundamental factors such as improvement in free-float and rising relative earnings of Indian companies”.
“The basic factors certainly apply in the case of India and to this extent, India’s new position in the emerging markets sector is not alarming”, the brokerage said It also said that India remains its top priority in the emerging markets region and second choice in the Asia-Pacific region.
According to the note, there are several possible triggers for the market decline, but they are not enough to put a brake on the rise in Indian equities. Some more distance may have to be covered before India’s performance in the index reaches its peak.
Market analysts said the performance of the Indian economy continues to be good and the macroeconomic situation is improving. Foreign direct investment (FDI) has increased by 47 percent in the first quarter of April-June in FY 2025. On the other hand, with Brent crude prices continuing to fall, there are now signs of it falling below $73 a barrel.
There is financial stability and the pace of growth in the economy remains strong. In June this year J.P. Foreign portfolio investors (FPIs) have invested more than Rs 1 lakh crore in the Indian debt market so far this year due to the country’s inclusion in Morgan’s government bond index for emerging markets.
