No immediate benefit for India, other EMs from Russia's MSCI, FTSE deletion

IIFL expects India's weightage in the MSCI EM index to increase by 30-35 basis points (bps) on account of Russia's removal. Edelweiss expects an increase of about 15-20 bps.

Global index providers MSCI and FTSE have both removed Russia from their indices. Typically, such a move would have redirected flows from Russia to other countries, including India. In this instance, other markets will not see any inflows as fund managers will not be able to sell their Russia assets immediately due to various curbs.

However, Indian and other emerging markets (EMs) will see greater incremental flows from passive funds tracking indices such as the MSCI EM.

IIFL expects India’s weightage in the MSCI EM index to increase by 30-35 basis points (bps) on account of Russia’s removal. Edelweiss expects