India overtakes Taiwan as Sensex jumps 11%, now 2nd in EM weight index
- IBEF
- September 5, 2022
With a remarkable bounce in Indian stocks this quarter, their position in the MSCI Emerging Markets (EM) Index has risen to second place, trailing only China's. According to Bloomberg data, India's country weight is 14.483% as of end-August, with 108 members. Taiwan, which contains 84 businesses in the MSCI EM index, including the most heavily weighted Taiwan Semiconductor Manufacturing Co., has a yield slightly higher than 14.480%. China continues to dominate, accounting for almost one-third of the index weights.
According to Bloomberg data, India's S&P BSE Sensex has risen 11% this quarter, the highest performance among national benchmarks in countries with a stock market capitalization of at least US$ 1 trillion. Overseas funds returned significantly this quarter, putting US$ 7.6 billion into the market.
Over the last two years, the weightings of China and India in the EM index have shifted dramatically as their market performances diverged, with a regulatory crackdown and tight Covid-19 limitations driving investors away from Chinese equities. According to the data, China's weighting has decreased by 9 percentage points since August 2020, while India's has increased by more than 6 points.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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