Nifty Indices rejig: A look at top winners and losers

In the Nifty CPSE ETF, Coal India is likely to see an inflow of $22 million, and Bharat Electronics with $16 million worth of inflows.

Page Industries, Canara Bank, State Bank of India, ABB India, Axis Bank, and Coal India are likely to see top net inflows in the upcoming Nifty Indices review, according to a report. The Equity Index Maintenance Sub-Committee of NSE Indices Limited will be replacing certain stocks and rejigging the weightage of its indices as part of its periodic review, which will take effect on March 31, 2023, at the close of March 29, 2023.

Nuvama Alternative & Quantitative Research predicts that top outflows will be seen in Reliance Industries, Infosys, Mphasis, Bandhan Bank, Mahindra & Mahindra, and ONGC.

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Kotak Mahindra Bank is expected to see inflows of $18 million in the Nifty 50 ETF, followed by HDFC and Axis Bank with inflows of $17 million and $14 million, respectively. However, due to weight-down activity, Reliance Industries with $42 million, Infosys with $39 million, and Mahindra & Mahindra with $24 million will remain top companies to see outflows.

In the Nifty Next 50 Index, Page Industries is likely to see inflows worth $35 million, followed by Canara Bank with an inflow of $31 million and ABB India with an inflow of $27 million. Meanwhile, Mphasis with $27 million and Bandhan Bank with $25 million worth of outflows are the companies expected to see the largest outflows.

State Bank is expected to see a net inflow of $28 million in the Nifty Bank ETF, followed by IndusInd Bank with $10 million and Axis Bank with $8 million. HDFC Bank is likely to see an outflow of $31 million, followed by $31 million worth of outflows.

In the Nifty CPSE ETF, Coal India is likely to see an inflow of $22 million, and Bharat Electronics with $16 million worth of inflows. ONGC, NTPC, and Powergird are expected to see outflows of $18 million, $17 million, and $26 million, respectively.

According to Abhilash Pagaria, the author of the note, Nifty Indices has modified its methodology, and as a result, the cumulative weight for non-F&O stocks in the Next 50 Index will be reduced from 15 percent to 10 percent.