No major changes in upcoming NSE rejig; NTPC, Punjab National Bank to see highest inflows

Power Grid, BEL, ONGC, Coal India, Oil India, NHPC, NBCC, NLC India and SJVN will see their weight in the CPSE index fall.

The quarterly NSE indices rejig will see no major changes or significant volume impact, as per Nuvama Institutional Equities.

The Nifty Indices quarterly rejig for the December 2024 review is scheduled for December 30. The few counters, from the CPSE, Nifty 50 and Nifty Bank indices, that will see the most changes in passive inflows are:

While HDFC Bank’s weightage will rise to 12.8 percent from 12.7 percent, that of Adani Enterprises will be up at 0.6 percent from 0.5 percent. HCL Technologies and ICICI Bank will see a minor addition to their weightage.

On account of the increase in weightage, Nuvama Alternative & Quantitative Research estimated increased inflows of up to $15 million for Adani Enterprises, $12 million for HDFC Bank, $4 million for ICICI Bank and $2 million for HCLTech.

As for Tata Motors, its weightage will decrease to 1.5 percent, while that for M&M, HUL, and ITC will also come down. Outflows for Tata Motors will likely be around $9 million, $8 million for M&M, $3 million for HUL and $2 million for ITC.

The CPSE index will also see changes, with NTPC and Cochin Shipyard being the sole contenders for an increase in weightage. NTPC's weightage will rise to 20 percent in the index, leading to inflows of $74 million, while Cochin Shipyard's weight will increase to two percent, with a total inflow of $13 million.

Power Grid, BEL, ONGC, Coal India, Oil India, NHPC, NBCC, NLC India and SJVN will see their weight in the index fall. This will lead to combined outflows of around $87 million.

Punjab National Bank, IndusInd Bank, Federal Bank, Bank of Baroda, Canara Bank, AU Small Finance Bank, ICICI Bank, Axis Bank and IDFC First Bank are among the Bank Nifty constituents that will see their weight in the index go up, with an increase in passive flows.

On the other hand, HDFC Bank (-$59 million), SBI Bank (-$57 million), and Kotak Mahindra Bank (-$19 million) are among those that will see their weight in the index reduce, leading to outflows.

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