RE: goodbye Index Funds mimic the performance of the Indices by duplicating the Index portfolio.....when a stock is added to an index, these funds are required to BUY the new addition as per their charter. When a stock like PG is dropped from an index, they are required to sell that stock, and replace it with the new entry ..........
The impact is usually some short term price weakness as these Index Funds liquidate the 'dropped' stock.
PG was likely dropped due to the short term breakdown in share price, or lack of relative strength. It's a knee jerk reaction that has nothing to do with PG's fundamentals.