India set for $1 billion boost from FTSE rebalancing, ICICI Bank to see inflows of $236 million

Mahindra & Mahindra will see its weight reduce, leading to an outflow of around $65 million.

India will likely receive $1 billion in net equity inflows as the FTSE All World and FTSE All Cap indices undergo semiannual rebalancing on September 20, according to IIFL Alternative Research.

KEI Industries, IRB Infrastructure Developers, and Cochin Shipyard are among 13 stocks set to be added to the FTSE All-World Index. The rebalancing is scheduled to occur during the final minutes of Friday's trading session.

From the 13 stocks expected to be added to the All World Additions, Cochin Shipyard will see inflows of $30 million, while KEI Industries will see passive flows of up to $53 million. Bank of Maharashtra and Central Bank of India will see the smallest flows, at $12 million and $7 million each.

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ICICI Bank, Kotak Mahindra Bank, Aditya Birla Capital and Tata Technologies, which are already constituents in the index, will see their respective weights go up. This will lead to combined inflows of $390 million.

Of the $390 million, ICICI Bank and Kotak Bank will see $236 million and $109 million each. On the other hand, Mahindra & Mahindra will see its weight reduce, leading to an outflow of around $65 million.

In the FTSE All Cap index, 53 counters will be added. Five-Star Business Finance, GE T&D India, Godfrey Philips India, and Eris Lifesciences will have the highest inflows, at $14 million, $11 million, $11 million, and $9 million, respectively.

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