ITC, Bharti Airtel’s weight may go up in Nifty rejig. $95 million passive inflows expected
ITC and Bharti Airtel’s weights in Nifty is expected to go up in the quarterly rejig which gets into effect on Thursday, triggering combined inflows of $95 million according to estimates by Nuvama.
Individually, ITC’s weight could go up by 10 bps to 3.7% resulting in potential inflows of $59 million while Airtel’s weight could go up to 3.6%, up 10 bps resulting in inflows of $36 million.
Two more stocks Infosys and Mahindra & Mahindra (M&M) could also see inflows of $19 million and $11 million, respectively while seeing no change in their weights, Nuvama noted.
Meanwhile, Larsen & Toubro (L&T), Reliance Industries (RIL), HDFC Bank and Bajaj Auto are expected to witness a combined outflow of $57 million. L&T's weight could go down by 10 bps, triggering outflows of $25 million, followed by RIL ($14 million), HDFC Bank ($10 million), Bajaj Auto ($8 million), respectively.
The net inflows will be $68 million.
In the Nifty Bank index, no net passive inflows are expected. While Kotak Mahindra Bank, State Bank of India (SBI) and ICICI Bank will see their weights go up triggering inflows of $99 million, heavy weight HDFC Bank along with IndusInd Bank are expected to be casualties in the rejig exercise. While the former's weight could go down by 190 bps, the latters weight could climb down by 30 bps.
Bank of Baroda, AU Small Finance Bank, Punjab National Bank (PNB), IDFC First Bank and Bandhan Bank will also see a downward revision in their weights.
The inflows will be negated by outflows of equal amounts.
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