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India stays a top emerging market bet as mid caps beat Nifty despite massive FII sell off
Business
Published on 9 May 2026
Jefferies flags a reverse AI trade cutting India’s index weight
India is still seen as a key emerging market destination even after a reported $21 billion FII sell off. A Jefferies Greed & Fear report points to a “reverse AI trade” that has reduced India’s weight in the MSCI Emerging Markets Index to 12 per cent, yet mid caps have managed to outperform the Nifty amid the volatility.
- FII selling of about $21 billion hasn’t shaken India’s EM appeal
- A “reverse AI trade” is tied to India’s MSCI EM weight dropping to 12%
- Mid caps continue to outperform the Nifty despite the outflows
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This summarization was done by Beige for a story published on 
Republic