The MSCI Global Standard Index rebalancing triggered a 1.5% decline in Indian stock markets on May 29, 2026. Passive global funds offloaded between $800 million and $1 billion in equities to adjust their portfolios. Foreign institutional investors (FIIs) recorded a historic single-day selloff of ₹21,106 crore in the cash market.
The rebalancing added Federal Bank, MCX, Nalco, and Indian Bank to the index. Conversely, MSCI removed Hyundai Motor India and Jubilant FoodWorks. Weightage reductions for major firms including Bajaj Finance, HUL, and TCS further accelerated passive outflows.
Selling pressure intensified during the final hour of Friday's session. This late-day surge drove the benchmark Sensex and Nifty indices to their session lows.