December 27, 2024
New Delhi, India
Nifty Rejig
The upcoming quarterly adjustments to NSE indices, including Nifty, Nifty Bank, and CPSE, set to take effect on December 30, are projected to cause significant passive fund flows in several stocks. A report by Nuvama Institutional Equities highlights that public-sector entities like NTPC, Punjab National Bank (PNB), and Adani Enterprises are among the top beneficiaries of this reshuffle.
Key Inflows:
- NTPC: Estimated to receive $74 million in inflows, driven by a weightage increase in the CPSE index.
- Punjab National Bank (PNB): Expected inflows of $25 million, accompanied by a weight rise in Nifty Bank to 2.5%.
- IndusInd Bank: Projected to attract $23 million.
- Federal Bank: Likely to see inflows of $18 million.
- Bank of Baroda (BOB): Estimated at $17 million.
- Adani Enterprises: Expected to bring in $15 million due to a minor weightage increase in the Nifty index.
Outflows:
The reshuffle is not favorable for all stocks. Notable outflows include:
- State Bank of India (SBI): Estimated outflows of $57 million.
- HDFC Bank: Projected to see $47 million in outflows.
- Power Grid Corp: Likely outflows of $23 million.
- Kotak Mahindra Bank: Expected at $20 million.
- Bharat Electronics Ltd (BEL): Estimated outflows of $19 million.
Index-Level Adjustments:
- CPSE Index:
- Weightage increases for NTPC (20% from 18.4%) and Cochin Shipyard (2% from 1.7%).
- Reductions for Power Grid, BEL, ONGC, and Coal India (30–50 basis points).
- Nifty Bank Index:
- Increases for PNB (60 basis points to 2.5%) and IndusInd Bank (60 basis points to 4.4%).
- Minor adjustments for Federal Bank, BOB, and Canara Bank.
- Nifty Index:
- Marginal increase for Adani Enterprises (+3 basis points).
- Slight reductions for Tata Motors, M&M, Hindustan Unilever, and ITC.
Market Trends:
The changes come as Adani Group stocks show strong momentum, with gains of 4–5% amid broader flat trading in Indian indices. Among Adani shares, Adani Green Energy emerged as the biggest gainer, up 4.91% to ₹1,081.80.
With cumulative inflows of $186 million expected for seven key stocks, the reshuffle underscores the dynamic nature of passive investment flows and their influence on market trends.
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