After trading in the green, Sensex and Nifty plunged sharply at 3 pm due to global uncertainty, weak monsoon projection, and MSCI's May index rejig. The Sensex dropped 1092 points, while Nifty fell 359 points.
The losses swelled by 850 points before closing as MSCI added four Indian stocks and removed four from its index.
MSCI is a global stock market index of over 1,600 stocks from 23 countries, serving as a primary benchmark for international fund allocation.
MSCI index rebalancing, a routine event every quarter, results in predictable investment flows.
Four stocks were included in the MSCI Global Standard Index, while four others were excluded, leading to estimated outflows of ₹8,000 crore.
The changes in the MSCI Global Standard Index remained at 12.3%, with India's weightage at 20% in July 2024.
