China wrests MSCI EM IMI top spot from India

Change in the pecking order comes amid a sharp rally in Chinese equities

- SAMIE MODAK

China has stayed on top for two consecutive months in the MSCI Emerging Markets Investable Market Index (EM IMI), after ceding the position to India in August.

At the end of October, China's weight in the key EM gauge stood at 24.72 per cent, up from 21.58 per cent at the end of August. India's weight during this period has slipped to 20.42 per cent from 22.27 per cent.

The change in the pecking order comes amid a sharp rally in Chinese equities fueled by aggressive stimulus measures by Beijing to support the economy.

Meanwhile, record foreign outflows, coupled with earnings disappointment, have taken some wind out of India's sails. From its September lows, the Shanghai Composite Index has rallied over 25 per cent, while India's benchmark S&P BSE Sensex is down 8 per cent from its peak in September.