India China Equity Performance: A New Benchmark Emerges

India Surpasses China in Key Global Equity Indices

India has recently surpassed China in another key global equity benchmark, with its weight in the MSCI Emerging Markets Investable Market Index (IMI) rising significantly. The current representation of Indian stocks in the MSCI AC World IMI has reached 2.35%, compared to China's 2.24%. The ongoing strong performance of Indian equities is reflected in these indices.

Growth of Indian Stocks in Global Markets

The MSCI AC World IMI encompasses a diverse range of large-, mid-, and small-cap stocks across 23 developed and 24 emerging markets, totaling 8,815 constituents. The US remains predominant with a 63% weighting, while India presently holds the sixth position. According to analysts, with its remarkable stock performance, India is set to surpass France and Canada, likely securing fourth place in this index soon.

Performance Comparison: MSCI Indices

• MSCI India Index: up 23% this year
• MSCI China Index: increased a mere 0.3%
• MSCI EM Index: up 6.52%

Abhilash Pagaria from Nuvama Alternative & Quantitative Research attributes this significant rise in Indian equities to their strong performance over recent months.

Future Outlook for Indian Equities

Although India's weight in the MSCI Emerging Market Index currently stands at 20.7%, trailing behind China's 23.74%, this momentum suggests that India might emerge as a leading force in the MSCI EM framework. The MSCI India Domestic Small Cap Index also expanded recently, adding 25 new stocks to its portfolio.