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