HDFC Bank is set to be the biggest beneficiary of the FTSE rebalance on December 15 as the stock's weightage will go up in the index, bringing in flows from passive funds. As per a Nuvama Research estimates, HDFC Bank might see inflows of $547 million, while IIFL pegs the number at $451 million.
On an overall basis, IIFL expects FTSE All World and All Cap quarterly changes to bring in a net inflow of $525 million for India.
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This includes inflows in HDFC Bank, Alkem Labs, Mankind Pharma, Suzlon Energy, Interglobe Aviation, Vedanta, Nexus Select Trust among 27 stocks. L&T, Jio Financial Services, 360 ONE WAM, Infosys, Delhivery are among the 23 stocks that will see outflows.
After the mega HDFC merger, FTSE in August had informed that the revised free float of the stock would be implemented in its indices in three tranches starting from September 2023 onwards. While two implementations have been done, the third and final one will be done in March.
BSE100
The S&P BSE 100 index will also see a dynamic shift as seven counters will change. As per IIFL, it is an active largecap benchmark. Tata Elxsi, Adani Power, Voltas, Bandhan Bank, Mphasis, Crompton Greaves Consumer Electricals and ACC are to be dropped from the index.
TVS Motor, Hindustan Aeronautics, Power Finance Corp, Yes Bank, APL Apollo Tubes, Persistent Systems and IDFC First Bank will replace the counters on the S&P BSE 100 index.
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The S&P BSE Sensex Next 50 index will see Voltas, Tata Elxsi, Crompton Greaves Consumer Electricals, Bandhan Bank, ACC, Mphasis, LTIMindtree, Bharat Electronics and Adani Power leave.
In exchange, TVS Motor Company, Power Finance Corporation, Hindustan Aeronautics, Persistent Systems, Dabur India, APL Apollo Tubes, IDFC First Bank, Yes Bank and UPL will start trading on December 18 as a part of the reconstituted index.
Dow Jones Sustainability index
Dow Jones ESG indices had announced the annual review last week and a few Indian companies were added. About $3-5 billion inflow will be tracking India, on the back of this, according to IIFL calculations.
WNS (Holdings), Embassy Office Parks REIT, JSW Steel, UPL, Godrej Properties and Macrotech Developers have been added to the Dow Jones Sustainability Emerging Markets index. JSW Steel, UPL and Dr Reddy's have also been added to Dow Jones Sustainability World index.
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