FTSE Russell proposes to raise India's weight in its global indices

Move follows MSCI step, inflows may rise by $2 billion

Global index providers have taken note of the government’s decision to virtually increase foreign ownership in listed companies. After MSCI, FTSE Russell has proposed to increase India’s weight on its global indices, which are tracked by funds with billions of dollars in corpus.

On Tuesday, the UK-based entity issued a new methodology to compute the weight of the country and individual stocks in its indices. 

The move could increase India’s weight on the widely-tracked emerging market (EM) indices by as much as 156 basis points (bps). This could result in $2 billion of passive inflows into the Indian markets, say experts.