Nifty rejig: $189 million inflow into Adani Ent, $56 million outflow from Shree Cement

Shree Cement could see an outflow of $56 million. Mindtree, which is being excluded from Nifty Next 50, comes a close second with an expected outflow of $55 million. Jubilant Foods, which is also being excluded from Nifty Next 50, comes third with an expected outflow of $35 million.

Reliance Industries’ weightage on the Nifty50 index is being reduced by 0.11% and State Bank of India’s weightage on the Nifty Bank index is being reduced by 0.68%.

The indices are rejigged periodically, when stocks are included or excluded depending on the change in their average free-float market cap. When a stock is on the index, it automatically gets money from passive funds that track indices.

Adani Enterprises is part of indices of MSCI Enterprises and FTSE India Index. “Interesting, the only Adani Group stock missing in MSCI Standard Index is Adani Wilmar and the key deterrent is free float,” said Abhilash Pagaria, head of alternative and quantitative research at Edelweiss.

After the Nifty rejig, Adani Enterprises is likely to see additional buying of 4.3 million shares, 1.3 times the 20-day average volumes. Adani Total Gas is likely to see additional buying of 1 million shares, a 2.4-fold jump over the 20-day average volumes, according to the Edelweiss team’s calculations.

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