NSE Rejig: $94 million cumulative passive inflows seen in NTPC, 2 other PSU stocks, says Nuvama
NTPC, NHPC and NLC India will see their weights go up on the Nifty CPSE following a semi-annual rejig in the index, effective from Thursday, March 28. The adjustment will likely trigger passive cumulative inflows of $94 million according to estimates by Nuvama.
A lion's share will be contributed by NTPC ($71 million) followed by NHPC and NLC India.
NTPC's weight on the Nifty CPSE will go up 20% versus the current weight of 17.9%. As for NHPC and NLC, the new weights post the readjustment will be 4.6% and 1.2%, respectively, versus 4.2% and 0.9%, now.
Eight stocks will see their weights go down resulting in passive outflows of $93 million, this report said. ONGC is expected to see the highest outflows at $29 million, followed by Coal India at $28 million and Bharat Electronics (BEL) at $20 million.
Others include Oil India (OIL, $6 million), Power Grid Corporation ($4 million), SJVN ($2 million), NBCC ($2 million), Cochin Shipyard ($2 million).
The semi-annual rejig in indices happens based on the performance of stocks. NTPC has rallied nearly 93% over the past 12 months while multibaggers NHPC and NLC have returned 120% and 203%, respectively, during the time.
The adjustments in the index will take place on Wednesday after the market closes.
Not just this, Nifty heavyweight HDFC Bank, Jio Financial Services and Adani Power will also be in focus ahead of the Thursday rejig in Nifty indices. These stocks are expected to be among the biggest beneficiaries of the latest adjustment exercise that could trigger
