Adani Enterprises Ltd, Adani Ports & SEZ and two private banks namely HDFC Bank and ICICI Bank would be among stocks that may see passive inflows on quarterly rebalancing of NSE indices this week. These changes will be become effective from June 30 (Friday) and that the adjustment will take place on Thursday.
Other stocks expected to attract inflows included PSU stocks ONGC, NTPC and Coal India, life insurer HDCL Life Insurance.
On the other hand, stocks such as BEL, IndusInd Bank, Axis Bank, Reliance Industries, Bank of Baroda, NHPC and JSW Steel are likely to see up to $28 million in outflows, Nuvama Alternative & Quantitative Research suggested in a note.
To study Nuvama analysed the impact led by recapping of stocks in three Nifty Indices namely Nifty50, Nifty Bank and CPSE Index. These are the key Nifty Indices in India which are majorly tracked by domestic passive funds, it noted.
The capping factor of stocks in all the Nifty Indices is realigned upon 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.
Cumulatively, top inflows are likely in HDFC Bank ($29 million), Adani Enterprises ($29 million), ONGC ($27 million), ICICI Bank ($25 million), Adani Ports & SEZ ($21 million), Coal India ($19 million), HDFC Life ($18 million)and NTPC ($17 million).
Top outflows are likely in BHEL ($28 million) , IndusInd Bank ($25 million), Axis Bank ($16 million, Reliance Industries ($12 million, AU BANK ($10 million) , Bank of Baroda ($10 million), NHPC ($8 million) and JSW Steel ($7 million).
Here's the likely index-wise flows trend: