HDFC-HDFC Bank merger: LTIMindtree shares may attract $125-130 million net inflows on Nifty entry

LTIMindtree is likely to see $125-130 million in net inflows on Nifty inclusion, Nuvama Institutional Equities said on Wednesday. As per Nuvama estimates, LTIMindtree will see passive inflow of appx $172 million due to Nifty entry. That said, LTIMindtree will also see about $50 million in outflows due to adjustment in Nifty Next 50. The net inflow should be somewhere around $125 million to $130 million, said Abhilash Pagaria of Nuvama Institutional Equities.

LTIMindtree will enter the elite club as HDFC shares cease to trade from July 13 due to the HDFC-HDFC Bank mega merger. The Nifty adjustment will take place on July 12 and would be effective from July 13.

"I believe most of the Index rebalance pre-emptive positioning is well priced in," Pagaria said in a brief note.

Meanwhile, Jindal Steel & Power will replace LTIMindtree in the Nifty Next 50 as the latter migrates to the Nifty club. This stock is expected to see $30 million in inflows.

HDFC's merger with HDFC Bank Ltd got effective from July 1. Termed as the biggest transaction in India's corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan. The entity is een having a combined asset base of around Rs 18 lakh crore.

Meanwhile, Mankind Pharma, which got listed on the stock exchanges in May, will replace HDFC Ltd in Nifty500 index on July 13, NSE said. LIC Housing Finance will replace HDFC Ltd in Nifty Financial Services Index. Mankind Pharma has also been included in Nifty Midcap150, Nifty Midcap100, Nifty200, and other indices. Zydus Lifesciences will replace Jindal Steel & Power in Nifty Midcap Select. Adani Group's Ambuja Cements Ltd will replace HDFC in Nifty High Beta50 index.

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