The weights of Mahindra & Mahindra, Bharti Airtel, and Axis Bank in the Nifty could move up as part of the index rejig, leading to a cumulative inflow of $86 million, said Nuvama. Reliance Industries, HDFC Bank, ICICI Bank, and Infosys are likely to see outflows worth $ 94 million on account of weight reductions.
The NSE is bringing changes to indices including Nifty, Nifty Bank, CPSE Index, and Nifty Next 50 from March 28. The total inflows on account of the inclusions and weight increases would be $652 million, while the outflows could be to the tune of $456 million.
“The final changes in the indices will take effect on March 28, while the adjustments and resultant flows will occur in the last 30 minutes of trading on March 27,” said Nuvama’s head of alternative & quantitative research Abhilash Pagaria in a note.
The highest inflows across all indices are expected from Shriram Housing Finance, HDFC Bank, and Jio Financial Services. The highest outflows are expected to be from SBI, UPL, and ICICI Bank. NTPC could see an inflow of $ 71 million due to an increase in weightage in the Nifty CPSE Index. NHPC and NLC India are also expected to witness an increase in weightage on the index.
On the other hand, ONGC, Coal India, and Bharat Electronics Limited could see a reduction in weightage as part of the rejig.