Adani fiasco brings down India's weight in the MSCI emerging markets index

The brutal selloff induced by the report has not only had an impact on Gautam Adani's personal wealth but also reduced India's weighting in MSCI's emerging-market benchmark

India's weightage in MSCI's emerging-market benchmark has dropped after the brutal sell-off in Adani Group's stocks. India has been replaced in the second spot by Taiwan after a rally in the latter's market. 

As of the end of January, Taiwan's weighting in the MSCI Emerging Markets Index rose to 14.2 per cent, behind leader China's 31.2 per cent, while India's fell to the third spot with 13 per cent, according to Bloomberg-compiled data.

The role reversal between India and Taiwan highlights the contagion of a stock meltdown that has wiped out $112 billion of market value in Gautam Adani's indebted