BSE Sensex drops nearly 850 points after MSCI index reshuffle
On Friday, May 29, 2026, the BSE Sensex dropped sharply, nearly 850 points in just 10 minutes, thanks to a major reshuffle in the MSCI Global Standard Index.
Some big Indian stocks got swapped in and out: Federal Bank, Multi Commodity Exchange of India, National Aluminium, and Indian Bank joined the index, while Hyundai Motor India, Jubilant Foodworks, Kalyan Jewellers, and Rail Vikas Nigam were removed.
Even though the total number of Indian stocks stayed at 165, India's share in the index slipped a bit from 12.4% to 12.3%.
MSCI reshuffle triggers 8000cr outflows
This MSCI shake-up triggered estimated fund outflows of about ₹8,000 crore, which likely fueled that sudden Sensex drop.
Plus, India's weight in the MSCI Emerging Markets Index is expected to fall further from around 20% in July 2024 to just 11.2%, according to IIFL Capital.
If you're into market moves or investing apps, these changes can impact how global funds view Indian stocks going forward.