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 cumulative inflows of over $650 million, according to estimates by Nuvama.
HDFC Bank will likely be the second-biggest gainer from the pack with inflows of $94 million and will only be behind Shriram Finance ($260 million), which makes its Nifty debut on Thursday replacing UPL. Meanwhile, Jio Financial Services will likely see inflows of $80 million and Adani Power $45 million, the Nuvama note said.
The rejig exercise will also see significant inflows in six other stocks viz. NTPC ($66 million), Power Finance Corporation (PFC, $45 million), REC ($43 million), Mahindra & Mahindra (M&M, $42 million) Bharti Airtel ($26 million) and Indian Railway Finance Corporation (IRFC $23 million).
Read More: HDFC Bank, Jio Financial, Adani Power to be in focus ahead of Nifty rejig on Thursday
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)