Nov 7 Reuters MSCI added five Indian companies to its Global Standard Index late on Wednesday, a move that brokerage Nuvama said would lift the country39;s weightage on the index to 20, further narrowing the gap with China.

MSCI said there would be 156 Indian stocks in the index, but that is only onefourth of China39;s 598, signalling scope for further inclusion of Indian stocks on the index.

The changes will take place after the markets close on Nov. 25, MSCI said.

The inclusion of the stocks will lift India39;s weightage in the index to a record 19.8 from 19.3 earlier, narrowing the gap with China, which has slipped to 26.8 from 27, Nuvama Alternative and Quantitative Research estimated.

It will also likely attract 2.5 billion in passive inflows into India39;s equity markets, Nuvama said.

China has the highest weightage in the MSCI Global Standard index, while India has been in second place since the end of 2021.

Air conditioner maker Voltas, realty developer Oberoi Realty, stock exchange operator BSE, Kalyan Jewellers, and drug maker Alkem Laboratories are the latest additions to the index.

Indian markets saw inflows of about 3 billion into equities after the previous MSCI rebalancing in August when seven stocks were added.

We remain extremely bullish on India, especially with active participation from mutual funds and high net worth individuals HNIsretail investors, and anticipate many more inclusions in the emerging markets index, said Abhilash Pagaria, head…