Foreign investors pull ₹20,637cr from Indian equities in MSCI selloff
Business
On Friday, foreign investors yanked ₹20,637 crore out of Indian equities, one of the biggest single-day exits in recent years.
This rush to sell came as MSCI rebalanced its index, causing a flurry of trading that made up nearly 70% of the National Stock Exchange's turnover.
MSCI review raises HFT amplification concerns
The MSCI review led to big moves in stocks like Bajaj Finance and TCS, but India's overall weight in the main index stayed at 12.3%.
Meanwhile, more than a dozen Indian stocks were excluded from the small-cap index.
Experts say high-frequency trading may have made all this volatility worse; as Kotak Mahindra's Nilesh Shah put it, he questioned whether HFT activity around the index reshuffle had amplified turnover.