India has surpassed China in the MSCI Emerging Markets Investable Market Index, boasting a record weight of 19.8% as of August 2024, up from 9.2% in December 2020. This shift, driven by strong foreign portfolio investments totaling $6.33 billion in 2024, has propelled the Nifty 50 Index to a 16% increase, outpacing Chinese markets. The rise in India's index weight reflects growing investor confidence, supported by policy stability post-elections, anticipated global interest rate cuts, and fiscal consolidation. Morgan Stanley emphasizes that while foreign investors face competition from domestic participants, this trend underscores India's attractiveness for foreign capital. The firm maintains that India's bull market is still in its early stages and expects further growth potential, with cyclicals like financials and technology favored over defensives. Overall, India's ascent in the MSCI index signifies a significant shift in global investment dynamics, positioning it as a key player in the emerging market landscape.