FTSE rebalancing: Honeywell Automation, Astral Poly Technik, Varun Beverages could see fund inflows

Owing to FTSE rebalancing, stocks such as Honeywell Automation, Astral Poly Technik, Varun Beverages and Adani Gas can see increased inflow on March 19 and subsequent days.

As per a report by broking firm Edelweiss, FTSE will include Apollo Hospitals, Honeywell Automation, Adani Gas, HAL, Astral Poly Technik, Varun Beverages and Mindtree in large or mid-cap categories in its semi-annual rebalance, which was announced in February and will come into effect on March 19.

"Among the notable additions to the FTSE All World (large-cap + mid-cap ) are RIL PP, Apollo Hospitals, Honeywell Automation, Adani Gas, HAL, Astral Poly Technik, Varun Beverages and Mindtree whereas only one deletion of Future Retail," Edelweiss said.

Brokerages expect these stocks may see an inflow of about $80-90 million due to this rebalancing.

In its semi-annual rebalance, announced in February, FTSE added Reliance Industries Partly Paid (RIL PP) stock to the large-cap group. It also shifted Adani Ent and Adani gas to the large-cap group from mid and small-cap categories.

FTSE rebalancing is considered significant for stocks as these influence the fund allocation by global investors as per stock weightage.

Stocks see inflows or outflows when their weight is increased or decreased in such indices.