Key facts
- India's cash equities trading value reached an all-time high on Friday.
- MSCI Inc.'s index changes prompted a wave of bulk deals.
- Global passive funds were the primary participants in these deals.
MSCI's index rebalancing is a significant event that influences global investment flows. When MSCI adjusts its indices, passive funds that track these benchmarks must rebalance their portfolios accordingly. This often leads to increased trading volumes, particularly in the affected markets, as these funds buy and sell securities to align with the new index composition. Such rebalancing can create opportunities for both passive and active investors.