The Morgan Stanley Capital International (MSCI) clarified that the Friday’s opening price of MSCI India index, which tanked more than 9 percent, was incorrect due to a technical issue. "The price is corrected and we are evaluating the impact to real-time indexes,” MSCI, which provides stock indices, tools and services for the global investment community, told CNBC-TV18.

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MSCI India Index plunged by 9 percent in the afternoon session on Friday even as Indian benchmark Sensex and Nifty dropped up to 1.3 percent.

MSCI Asia Pacific Index and MSCI Emerging Markets Index also declined by around 1.5 percent at the same time.

The MSCI indices are market cap-weighted indices which mean a stock with the largest market capitalisation gets the highest weightage on the index.

The MSCI India Index is designed to measure the performance of the large and mid-cap segments of the Indian market. With 114 constituents, the index covers approximately 85 percent of the Indian equity universe.

Recently, India’s largest private bank HDFC Bank replaced HDFC on MSCI Global Standard indexes following the merger of housing finance parent company into the bank.

Following the $40 billion merger, the foreign shareholding in the combined entity is estimated at about 60-62 percent, allowing HDFC Bank to be added to the MSCI index for the first time since 2013.

In May, three stocks of Max Healthcare, Hindustan Aeronautics and Sona BLW Precision Forgings had made their entry into the MSCI India Index, replacing Adani Transmission, Adani Total Gas and Indus Towers.

According to preliminary calculations by Nuvama Alternative and Quantitative Research, India could receive net passive foreign flows of $600-700 million due to changes in the index.