MSCI EM top 10 lacks Indian firms for 1st time
Big shift alert: No Indian company is in the top 10 of the MSCI Emerging Markets Index, for the first time since at least 2000.
HDFC Bank and Reliance Industries, once ranked seventh and eighth, have now dropped to 11th and 12th as their market weight fell below 0.8%.
India's overall share in the index hit a six-year low at 10.87%.
India's MSCI share falls to 10.87%
This drop reflects how global investors are chasing AI and tech stocks, leaving traditional markets like India behind.
India's share was at a record level in 2024 and is now 10.87%, but equity inflows shrank by 40% in May as oil prices hovered around $100 a barrel.
With over $1.8 trillion tied to MSCI EM indexes, this shift could mean less capital flowing into India.
India announces $20 billion forex scheme
To tackle these challenges, the Indian government announced reforms on June 5, like tax breaks for foreign portfolio investors on interest and capital gains from government securities and a foreign exchange deposit scheme aiming for $20 billion, to help stabilize reserves and encourage fresh investment.