India Outpaces China in Emerging Markets as Foreign Funds Pour In

Thursday, 5 September 2024, 01:56

India is poised to surpass China in the emerging markets index, capturing foreign funds and propelling a stock market rally to new heights. Analysts from Morgan Stanley note that India's weightage has increased significantly, boosting foreign portfolio investments. The surge in the Indian stock market indicates strong potential for continued growth.
Firstpost
India Outpaces China in Emerging Markets as Foreign Funds Pour In

India’s Rising Influence in Emerging Markets

India is rapidly moving up the charts, potentially overtaking China in a key emerging markets index. The latest report from Morgan Stanley highlights India's growing presence in the MSCI emerging markets index, with its weightage rising to 19.8% while China's has slipped to 24.2%. This shift signals a surge in foreign funds, marking the Indian stock market as a powerful player on the global stage.

Foreign Portfolio Investors Fueling Growth

Foreign portfolio investors (FPIs) have shown strong confidence in India's market, buying shares worth 531.78 billion rupees ($6.33 billion) in 2024. Since June, FPIs have remained net buyers, aided by a stable economic environment and anticipated global interest rate cuts.

  • Nifty 50 has seen a remarkable 16% increase this year, outperforming other markets including China.
  • Analysts believe this is just the beginning of a sustained bull market.
  • Sector preferences lean towards cyclicals and large-caps, particularly financials and technology.

Overall, market conditions suggest India is well-positioned for sustained growth in the coming months.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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