ONGC may see inflow post changes in FTSE all-world index

The index was reviewed recently and the changes will be effective from tomorrow’s close. There are some major changes in the large cap names. Most of the brokerages who track the FTSE index feel that there will be some passive inflows and outflows in some of the largecap names.

Citi and Morgan Stanley expect inflows in stocks like ONGC , Mahindra & Mahindra (M&M), SBI , GMR and IDFC while L&T , Bajaj Auto , Grasim , Cipla and Lupin are likely to get some outflows. Within these stocks the maximum inflow, what most of the dealers expect, is going to be in ONGC where they expect a passive inflow of close to USD 34-35 million. The largest outflow is expected in stocks like L&T and Bajaj Auto.

The FTSE index is not widely tracked as what the MSE index. However, dealers say there are passive long only funds both in Europe and in US who track benchmark FTSE index to their investments as well.