Business Standard

Russian stocks' removal from global indices to divert FPI flows into India

Analysts predict between $600 mn-$2.4 bn of inflows into domestic stocks

illustration
Premium

Illustration by Binay Sinha

Samie Modak Mumbai
The West is trying to attack Russia financially following its invasion of Ukraine. There are no sanctions yet that impose investment restrictions in Russian stocks. However, global index providers MSCI and FTSE are maintaining a tight vigil and mooting removal of Russia from their indices.

Such a move will lead to billions of dollars of outflows from Russia. Meanwhile, some portion of the outflows could get into other emerging markets (EMs), including India. This is because India’s weightage in the MSCI EM and other widely-tracked indices will edge higher if Russia is removed.

Late Monday, MSCI sought fund managers’ feedback

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in