What is MSCI rebalancing, quarterly adjustment that triggered Sensex drop by 1092 points?
The MSCI index rebalancing, a quarterly adjustment, significantly impacted the Indian stock market, leading to a sharp decline in the Sensex and Nifty indices. The Sensex dropped by 1092 points, while the Nifty fell by 359 points, influenced by global uncertainties and changes in stock inclusion. The rebalancing resulted in substantial outflows estimated at around ₹8,000 crore due to the addition and removal of several stocks from the MSCI index.
- ▪The MSCI index rebalancing occurs quarterly and affects stock visibility and investment flows.
- ▪On the day of the rebalancing, the Sensex fell from around 75,500 to approximately 74,700 within minutes.
- ▪Four stocks were added to the MSCI index while four others were removed, contributing to significant market volatility.
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What is MSCI rebalancing, quarterly adjustment that triggered Sensex drop by 1092 points?The inclusion and exclusion of stocks in MSCI is done through MSCI index rebalancing, a routine event that takes place every quarter.Published on: May 29, 2026 5:33 PM ISTBy Majid AlamShare viaCopy link After trading for hours in the green, benchmarks Sensex and Nifty plunged sharply at around 3 pm, falling from the day's high due to several reasons, including global uncertainty and weak monsoon projection.Both Sensex and Nifty fell significantly during final minutes before Friday closing. (PTI)The Sensex dropped by 1092 points, while the Nifty fell by 359 points.
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