The Congress party alleges insider trading by foreigners ahead of the BJP s predicted victory in the exit polls on May 31, resulting in a surge in stock market activity. FPIs made significant purchases linked to the MSCI s quarterly rebalancing, impacting global indices and passive funds.
The MSCI Global Standard Index and MSCI India Smallcap Index are expected to result in significant inflows due to adjustments that could surpass a couple of billion dollars on May 31st in the Indian equities markets. The weight of India in the MSCI Emerging Markets Index will rise from its current 18.3 percent to 19 percent.