Indian stock market could see additional foreign fund flows as in the wake of sanctions on Russian banks and businesses, global fund managers have started exiting Russia.
On Tuesday, MSCI, the world’s leading index provider, said it will remove Russia and its companies from its indices. This came close on the heels of Norges Bank Investment Management, world’s largest sovereign wealth fund with about $1.3 trillion in assets under management, on Monday saying it would exit Russian assets.
Exit of foreign funds from Russia could mean some investments, which were to go to that country, along with the funds which investors will receive by selling Russian assets could now be allocated to India, a report by Edelweiss said.
Removing Russian stocks from the MSCI index will lead to $600 million in foreign inflows into Indian equities, brokerage firm Edelweiss Alternative Research said on March 1. These inflows will get distributed in index heavyweights like Reliance Industries Ltd, Infosys Ltd, HDFC Ltd, ICICI Bank Ltd and TCS, the brokerage report added.
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Fund Wallet is a AMFI registered Distributor of Mutual funds. This is not an Investment Advise. Source- moneycontrol
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