NSE Index rebalancing | HDFC Bank, ONGC, Adani Enterprises, ICICI Bank set to see inflows of $125mn: Nuvama

HDFC Bank, ONGC, Adani Enterprises Ltd, ICICI Bank and Adani Ports & SEZ are expected to witness inflows of approximately $125 million as part of the quarterly rebalancing of NSE indices taking place on June 28. Additionally, NTPC, Coal India and HDFC Life Insurance are also projected to attract inflows during this rebalancing, according to Nuvama Alternative & Quantitative Research.

Conversely, BEL, IndusInd Bank, Axis Bank, Reliance Industries, Bank of Baroda, NHPC and JSW Steel are likely to experience outflows totalling around $116 million, as suggested by Nuvama.

Nuvama conducted an analysis on the impact of stock recalibration in three major Nifty Indices: Nifty50, Nifty Bank and CPSE Index, which are extensively tracked by domestic passive funds in India.

“The capping factor of stocks in all the Nifty indices is realigned upon a change in equity, investible weighted factor (IWF), replacement of scrips in the index, periodic rebalancing and on a quarterly basis on the last trading day of March, June, September and December by taking into account closing prices as on T-3 basis, where T-day is last trading day of March, June, September and December,” Nuvama said in its note.

Cumulatively, HDFC Bank is expected to witness inflows of $29 million, followed by Adani Enterprises and ONGC with inflows of $29 million and $27 million, respectively. ICICI Bank is projected to receive $25 million in inflows, while Adani Ports & SEZ is expected to see inflows of $21 million. Coal India, HDFC Life and NTPC are also anticipated to attract inflows of $19 million, $18 million and $17 million, respectively.

On the other hand, BHEL is likely to experience outflows of $28 million, while IndusInd Bank and Axis Bank are expected to see outflows of $25 million and $16 million, respectively. Reliance Industries, AU BANK, Bank of Baroda, NHPC and JSW Steel are also projected to see outflows of $12 million, $10 million, $10 million, $8 million and $7 million, respectively.