* India has become the largest weighting in the MSCI EM IMI, overtaking China yesterday
* Likewise, its weight in the EM index is knocking on the threshold to be the largest
* Is this good or bad news for Indian equities?
* A rising weight essentially means more absolute foreign flows
* The problem for foreign portfolio flows is that the domestic market participants are outbidding them
* This is why the growing issuance pipeline is important for rising foreign participation
* Rising index weight can be a tell tale sign of exuberance
* It could also be happening due to fundamental factors such as improving free float and rising relative earnings
