Large-Cap Stocks May Lead India’s Market Recovery, Analyst Says

An analyst thinks big Indian companies may lead the next part of the market recovery.

He says this could happen if foreign investors begin putting more money into India.

Foreign investors often buy large companies first because they are part of major market indexes.

India’s share of an important MSCI index increased slightly in the August review.

This was the first increase after seven reviews in which India’s share had fallen.

The analyst believes this change helped improve foreign investment flows in July and August.

He also expects the November review might slightly favor India.

Smaller companies may still matter, but large companies could become the main market leaders for a while.