FTSE And Sensex Rejig: India May See Over $1.7 Billion Inflows Led By Financial Stocks
The FTSE stocks rejig is set to come live on March 15, while the Sensex rejig will happen on March 18.
With the FTSE and Sensex rejig set to come live soon, India will see an inflow of over $1.7 billion, mainly from the financial space, according to Nuvama Alternative & Quantitative Research.
The FTSE stock rejig is set to go live on March 15, while the Sensex rejig will happen on March 18.
Among both the rejigs, FTSE is the most significant and the Sensex rejig will be a "non-event," Nuvama said in a report on March 14. "The major inflows are in BFSI names such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Sundaram Finance."
FTSE, in its semi-annual index review, had added 16 Indian companies to its All-World Index.
Fertilisers and Chemicals Travancore Ltd., Jindal Stainless Ltd., Kalyan Jewellers India Ltd., KPIT Technologies Ltd., Mazagon Dock Shipbuilders Ltd., Metro Brands Ltd. and New India Assurance Co. were among the companies added to the FTSE All-World Index.
The brokerage expects inflows from 66 stocks, while it added that 14 stocks will see outflows.
In the FTSC rejig, HDFC Bank Ltd., ICICI Bank Ltd., and Kotak Mahindra Bank Ltd. will see the highest amount of inflows of $511 million, $381 million, and $149 million, respectively, according to Nuvama.
Sensex Rejig
The BSE announced its periodic reconstitution of S&P BSE Indices, with Jio Financial Services Ltd. being the only addition to the S&P BSE Large Cap. The changes in the index will be effective on March 18.
Jio Financial Services, Tata Technologies Ltd., JSW Infrastructure Ltd. and Indian Renewable Energy Development Agency Ltd. were included in S&P BSE Large-Mid-Cap.
According to Nuvama, the Sensex rejig will trigger inflow mainly into Maruti Suzuki India Ltd., Tata Steel and Ltd., and ICICI Bank Ltd.
Meanwhile, this rejig will result in outflows at Larsen and Toubro Ltd., Reliance Industries Ltd., and Infosys, among others.
