On the wane: Over $1 trillion rout trims India's weight in EM gauges

Country slips to third position on MSCI Emerging Market indices

India’s influence in the widely followed MSCI Emerging Market (EM) indices is diminishing, with its market capitalisation shrinking by more than $1 trillion since its peak in September last year.

 

The country’s weighting has dropped by more than 200 basis points (bps) to below 20 per cent in the MSCI EM, and its spinoff MSCI EM Investable Market Index (IMI), which are tracked by passive funds with assets worth more than $500 billion.

 

In the flagship MSCI EM index, the cumulative weighting of Indian companies stood at 18.41 per cent in January, down from 20.8 per cent in September last