Despite recent corrections, Apollo Hospital Ltd is likely to replace Indian Oil Corp Ltd on the Nifty50 index during the next rebalancing by the National Stock Exchange, expects Edelweiss Research.
In a note earlier in December, the brokerage firm had predicted that Apollo Hospital or Info Edge is likely to enter into the Nifty50 index. Apollo Hospital declined nearly 26 percent from its 52-week high of 5,930.70 hit on November 29, 2021.
Edelweiss expects an inflow of $175 million in the stock after inclusion in the benchmark index while IOC could see around $100 million flowing out.
The next NSE semiannual index rejig will be announced in the second half of February 2022 and the changes will be effective from 1 April 1.
Edelweiss also said that it continues to believe that Bank of Baroda will replace RBL Bank in the Nifty Bank index. BoB may see an inflow of $63 million, while RBL Bank may see an outflow of $28 million.
Edelweiss does not expect any inclusion or exclusion in the forthcoming MSCI Quarterly Review. There will be slight weight adjustments in the existing constituents, it said.
The brokerage firm said that after the conversion of partly paid-up shares to ordinary shares, the domestic indices (Nifty and Sensex) have made the adjustments and now it expects MSCI to take the same into account in the February review.
It expects an inflow of $180-200 million into the stock.
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