Indian equity market set to see inflow of $3.6 billion after US federal pension fund switches index

The Indian equity market is expected to see an inflow of $3.6 billion (Rs 30,000 crore) after the US Federal government pension fund decided to switch its benchmark index for international funds.
Not just India, but the US government's move will benefit economies globally as the change is expected to reshuffle $28 billion (Rs 2.3 lakh crore) in equity investments around the world.

The Federal Retirement Thrift Investment Board (FRTIB) has assets worth $600 billion.

What is US Federal Pension Fund's latest move

The FRTIB currently uses the MSCI EAFE index for investments.

Now instead of the MSCI EAFE index, MSCI ACWI will use the IMI ex USA ex China ex Hong index.

While the EAFE index comprises 21 developed markets, India is not a part of the index.

On the other hand, the MSCI ACWI IMI covers both developed markets and emerging markets.

Countries to see inflows

Countries to see outflows