Nifty bulls may get $26 billion boost if MSCI upgrades Korea to DM

The potential upgrade of Korea from an emerging market to a developed market by global index provider MSCI could inject $26bn into Nifty, already buoyed by $9bn of foreign institutional inflows (FIIs), unless delayed by not making it to this year’s DM watchlist. The upgrade will likely result in China and India benefiting from an outflow of $39bn and an inflow of $26bn, respectively. An actual inclusion is only feasible in late 2024 and will see active funds positioning ahead of the inclusion and passive/indexed fund flows occurring much later.