The MSCI is expected to announce its 2023 Annual Market Classification Review results tonight and a positive outcome may see India benefit from significant foreign fund inflows as well.

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CNBC-TV18 learns that there’s a likelihood that South Korea may be put in watchlist for recategorisation into a developed market from an emerging market category.

In case South Korea is put on MSCI’s watchlist, the tentative timeline for South Korea to enter MSCI’s developed market index will be over a span of one and a half to two years.

South Korea currently accounts for almost 12.4 percent of the MSCI EM Index and re-allocation of emerging market money may see net inflows into other large EM Asian markets like China, Taiwan and India.

Also Read: How will indices like MSCI, FTSE treat Shriram Finance post Piramal block deal

Nomura estimates close to $26 billion of inflows into India and includes both active and passive funds.

According to Nomura, active fund inflow may be at $20.1 billion and passive fund inflow might be at $6 billion.

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First Published:Jun 22, 2023 6:49 PM IST