BENGALURU, Feb 13 Reuters India has narrowed the gap with China in MSCI39;s Global Standard index, which tracks emerging market stocks for investors, after the latest revision.

Index provider MSCI raised, India39;s weightage in the index to an alltime high of 18.2 on Tuesday, which could lead to inflows of about 1.2 billion, analysts said.

In comparison, China39;s weight in the index fell to 25.4 after the February revision, from 26.6 a year ago.

The convergence of weights between Indian and Chinese stocks has intensified since August 2020, when China39;s weightage was five times that of India39;s.

MSCI39;s revisions will come into effect after market close on Feb. 29. Indian shares had a 17.9 weight on the index ahead of the February review.

The gain for India can be attributed to a sustained rally in equities and relative underperformance of other emerging markets, especially China, Nuvama Alternative Quantitative Research said in a note on Tuesday.

India could surpass a 20 weight on the MSCI index by early 2024, on consistent flows from domestic institutional investors and steady foreign portfolio investor participation, Nuvama said.

MSCI added five Indian stocks to its Global Standard index and did not move any out. In contrast, the index provider removed 66 Chinese stocks while adding five.

India39;s stateowned lenders Punjab National Bank and Union Bank of India were added to the largecap category, while Bharat Heavy Electricals and NMDC were included in…