India's weightage in the index has nearly doubled since November 2020.

The climb can be attributed to India's standardized foreign ownership limit (FOL) in 2020, the sustained rally in domestic equities and relative underperformance of other emerging markets, especially China, Nuvama Alternative & Quantitative Research said in a note.

India has the second-highest weightage in the MSCI Global Standard index, after China.

With consistent flow from domestic institutional investors and steady foreign portfolio investors' participation, there is potential for India to surpass a 20% weight in the MSCI Global Standard index by early 2024 itself, Nuvama added.

MSCI added five Indian stocks to its Global Standard index with no deletions in its February review. In contrast, the index provider deleted 66 Chinese stocks while adding five.

State-owned lenders Punjab National Bank and Union Bank of India were added to the large-cap index, while Bharat Heavy Electricals and NMDC were included into the mid-cap index. GMR Airports Infrastructure was moved to the mid-cap index from small-cap.

According to Nuvama Alternative & Quantitative Research, India could witness up to $1.2 billion FPI passive inflows to the standard and small-cap indexes after the February review.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)

By Bharath Rajeswaran