Take a look at the newspaper clipping below.
The Indian Equity market provides international investors with an exposure to a well diversified emerging economy, that is not overly dependent on exports or raw materials and has a large domestic market.
BRIC nations like Brazil and Russia are more heavily concentrated on the commodity sector (basic raw materials).
China is an export oriented BRIC country.
However as the article says, the Agriculture and Trade sector are both absent from the NIFTY & BSE SENSEX.
Another point worth noting is the gradual rise in the % weight of the Banking and Financial services sector.
Internationally, both the FTSE (U.K) and the Hang Seng (Hong Kong) have considerable exposure to banking and financial services.
A Benchmark index must be truly representative of the underlying economy, and currently I feel that the Banking and Financial services' % weight in the index is too high.
In the long run, I would hope that sectors like Pharmaceuticals, Telecom, and Cement are given a greater share of the index.
The Automobile and FMCG sectors are also vital components when it comes to gauging consumer consumption demand.