New Delhi, November 17 (IANS). The world’s top industry experts are of the opinion that due to the reform initiatives of the government and the rapidly growing tech industry, India has become a market that no one can ignore.
A participant in a recent seminar on “Investment Opportunities in Asia and the Post-Trade Response” said that five years ago India’s weightage on the Emerging Markets Index was nine per cent. “It has now crossed 20 per cent. This is a growth story with a lot of positives in terms of penetration across multiple structural and different product categories,” he said.
The seminar was organized by ‘The Asset’ in collaboration with Deutsche Bank.
According to MSCI Emerging Markets Index, the weightage of the top five countries is about 80 per cent. India has grown steadily stronger in recent years. JP to issue Government of India bonds due in June 2024 Morgan was included for the first time in the Global Bond Index – emerging market indices. The experts included in the panel said that this has created a platform for investment worth billions of dollars in India.
Additionally, global brokerage CLSA has shifted its “strategic allocation” from China to India, citing growing concerns over Beijing’s economy and investor sentiment following the US presidential election. CLSA said in its note, “The interest on US bonds and inflation expectations reduce the scope for the Fed to cut policy rates. This also makes the People’s Bank of China (PBOC) less likely to cut rates.” We are concerned that these issues will put a halt to the buying of foreign investors who had invested in China after the initial PBOC stimulus in early October. We are reversing our tactical allocation – in the case of China, we are returning to the benchmark and increasing India’s weightage to 20 per cent.”
She said both MSCI China and India have fallen 10 percent in US dollar terms over this period, so she has no loss in switching.
India will be included in the prestigious FTSE Russell Emerging Markets Government Bond Index in September next year. The industry has appreciated it.
FTSE Russell has announced that it will add India’s government bonds to its Emerging Markets Government Bond Index (EMGBI) in September 2025. India’s debt will be included in FTSE’s $4.7 trillion emerging markets bond index. It will take six months to complete the process. Its final weightage will be 9.35 percent, which will be the highest after China in the index.
India has overtaken China to become the sixth largest market in the MSCI All Country World Investable Market Index (ACWI IMI). Global indices track the performance of capital markets around the world.
–IANS
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