Individually, ITC’s weighting increased by 10 bps to 3.7% with expected inflows of $59 million, while Airtel’s weighting increased by 10 bps to 3.6% with expected inflows of $36 million.
Nuvama noted that two stocks — Infosys and Mahindra & Mahindra (M&M) — are also expected to see inflows of $19 million and $11 million, respectively, but in the same ratio.
Meanwhile, Larsen & Toubro (L&T), Reliance Industries (RIL), HDFC Bank and Bajaj Auto are expected to see outflows totalling $57 million. L&T’s weighting could be reduced by 10 basis points, triggering outflows of $25 million, followed by RIL ($14 million), HDFC Bank ($10 million) and Bajaj Auto ($8 million) respectively.
Net inflows will be $68 million. The Nifty Bank index is not expected to see any net passive inflows. While the weightages of Kotak Mahindra Bank, State Bank of India (SBI) and ICICI Bank are expected to increase, attracting inflows of $99 million, heavyweights HDFC Bank and IndusInd Bank are expected to be victims of restructuring. The weightage of the former may decline by 190 basis points, while that of the latter may decline by 30 basis points. The weightages of Bank of Baroda, AU Small Finance Bank, Punjab National Bank (PNB), IDFC First Bank and Bandhan Bank will also be revised downwards. The inflows will be offset by outflows of an equal amount.
In the CPSE index, NTPC’s weighting will increase to 20% from the current 18.8%, which is expected to attract inflows of $61 million.
The index is also seeing outflows of a total of $60 million across 10 stocks – Bharat Electronics Limited (BEL), Coal India, ONGC, NHPC, Oil India, Power Grid, Cochin Shipyard, NBCC, SJVN and NLC India.
Except for NBCC, SJVN and NLC, the weightage of the remaining stocks will go down.
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(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not necessarily represent the views of The Economic Times)
