MSCI’s quarterly rebalancing of its global benchmark indices has long attracted the interest of global investors, triggering inflows and outflows across markets. For example, its latest rejig – which came into effect on Friday – triggered a sharp sell-off in the Indian stock markets late in the session, with benchmark indices ending 1.5% down from Thursday. “Indian Equity Market has witnessed massive activity from the FPIs on the day of MSCI rebalancing,” Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Co, posted on X on Friday, adding that Foreign Portfolio Investors accounted for around 69% of the total turnover of Rs 2.87 lakh crore on National Stock Exchange. The indices provided by New York-based MSCI, formerly Morgan Stanley Capital International, are keenly eyed by investors across the world because they dictate the flow of capital, especially passive funds that closely track the weights assigned to regions, countries, and companies.…