US pension fund's index switch: Indian equity mkts set for $3.6 bn bonanza

Changing benchmark will trigger $3.6 bn inflows into domestic equities

A US federal government retirement fund’s decision to change its equity benchmark index for gaining international exposure is set to trigger a churn of $28 billion (Rs 2.3 trillion) across global equities, and India is expected to be a major beneficiary of the move. According to analysts, Indian equity markets may attract inflows of $3.6 billion (Rs 30,000 crore)  on account  of this  churn.

The Federal Retirement Thrift Investment Board (FRTIB), one of the US government’s main retirement funds with assets of over $600 billion, recently decided to switch the benchmark index it uses for investing in global equities from