Adani Power, Jio Financial, NTPC, HDFC Bank, IRFC, SBI, RIL, Infosys shares: NSE rejig on March 28; stocks in focus

The semi-annual rejig of Nifty Indices would take place on March 28, with adjustments on Wednesday, March 27, where Shriram Finance Ltd is likely to see $188 million in passive inflows due to Nifty entry while UPL Ltd could see about $95 million outflows on the index inclusion, Nuvama Alternative & Quantitative Research suggested. Net-net, Shriram Finance, HDFC Bank, Jio Financial Services Ltd (JFS), NTPC Ltd, Adani Power Ltd, PFC, REC and Mahindra & Mahindra Ltd (M&M) are seen attracting highest inflows due to the NSE rejig.

The announcement was made on February 28.

State Bank of India (SBI), UPL, ICICI Bank Ltd, ONGC, PI Industries, Coal India, Reliance Industries and Kotak Mahindra Bank are expected to see outflows due to the rejig.

As per Nuvama, HDFC Bank would see $94 million in passive inflows. It will be followed by Jio Financial shares, which are likely to see $80 million in passive inflows. NTPC may attract $66 million inflows. Adani Power and PFC could see $45 million inflows each while REC and M&M may also attract $42-43 million inflows, as per Nuvama's estimates.

In the case outflows, SBI may see outflows to the tune of $103 million. ICICI Bank may see $77 million outflows; ONGC and PI Industries may see $32 million outflows each, as per Nuvama estimates.

In Nifty Bank key Inflows are likely in HDFC Bank ($123 million |0.3 times average daily volumes) and IndusInd Bank ($18mn |0.3 times ADV) while key outflows are in SBI ($95 million, 0.6 times ADV), ICICI Bank ($57 million|0.2x ADV), Axis Bank ($15 million, 0.1x ADV) and Kotak Bank ($14 million, 0.1x ADV).

In the CPSE Index, the inflow will be seen in NTPC ($71 million, 1.1x ADV), NHPC ($13 million, 0.1x ADV) and NLC ($10 million, 0.4x ADV).

"The substantial outflows are in ONGC ($29mn |0.6x ADV), COAL ($28mn |0.5x ADV) and BHEL ($20mn |0.3x ADV). In Nifty Next 50, the inclusion names are : Jio Fin ($80 million), Power Fin ($48 million), Adani Power ($45 million), RECL ($45 million) & IRFC ($23 million). Exclusions: Shriram Fin ($72 million), PI Inds ($32 million), Muthoot Fin ($15 million), P&G Health ($12 million) & Adani Wilmar ($7 million)," Nuvama said.