Billions of dollars may come into Indian stock markets after rule tweak
Live MintThe Indian stock market is set to see billions of dollars of inflows after a policy tweak comes into effect on April 1, analysts predict. The change will likely increase India’s weighting in the MSCI Emerging Markets Index by about 70 basis points, according to the two brokers, compared with 8.6% as of last month. Foreign investors injected $1.7 billion into India’s stock market this year as of Jan. 20, the most since November, helping the benchmark touch fresh highs earlier this month. Unless companies pass resolutions to keep the foreign portfolio investment limit at 24%, all firms in India will irreversibly have their threshold lifted to the sector’s cap after April 1, Morgan Stanley strategists including Sheela Rathi and Ridham Desai wrote in a note last month.