News Mania Desk/ Piyal Chatterjee / 18th September 2024
India now holds the top spot in the MSCI Emerging Markets Index, surpassing China. According to MSCI IMI, India is now leading all developing markets as of the end of August.
According to a survey, among the large, mid, and small-cap counters from 24 Emerging Market economies that make up the MSCI EM Investable Market Index (IMI), India has emerged as the largest emerging market. In a note published on September 17, Morgan Stanley stated that since its peak in early 2021, China’s weight in the index has decreased by half.
Just behind France, India’s stock market is currently the sixth largest in the world. Morgan Stanley believes India will continue to grow its market share because of its robust performance, fresh listings, and increased liquidity.
In terms of its pan-Asia EM asset allocation, Morgan Stanley is still “Overweight” on India and “Underweight” on China.
Morgan Stanley’s equities strategists pointed out that there is a notable difference in business earnings and operational growth between the two markets due to India’s nominal GDP growth, which is currently in the low teens and more than three times quicker than China’s.
