FTSE index to drive passive inflows worth $1.7 billion

The major chunk of passive inflows will be flowing into BFSI names like HDFC Bank, Kotak Mahindra Bank, and Sundaram Finance.

The rejig of the FTSE index, which comes into effect from March 15, is expected to trigger passive inflows of around $1.7 billion, with the major chunk flowing into BFSI names like HDFC Bank, Kotak Mahindra Bank and Sundaram Finance, as estimated by Nuvama Alternative & Quantitative Research.

A couple of more rejigs like that of the BSE Sensex and Bharat 22 indices also comes into effect from the next session. Though most of the price action is already priced in, there can still be a significant volume impact, the brokerage said.

It sees the Sensex rejig as a non-event, with some funds coming into Maruti Suzuki and negligible outflows in L&T.

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The Sensex rejig will also sees inflows in the range of $0.2-3.8 million into Tata Steel, HDFC Bank, ICICI Bank, Bharti Airtel, ITC and IndusInd Bank. On the flipside, RIL, Infosys, SBI, Hindustan Unilever and M&M will see marginal outflows.

Coming to the FTSE rejig, other than BFSI names, Zomato, SJVN, Grasim, Jai Balaji Industries and Kaynes Tech will see decent inflows. RIL, Infosys, TCS, Tata Motors and Titagarh Railsystems will see marginal outflows.

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