Reliance Industries Ltd (RIL) and IndusInd Bank will see major inflows up to $148 and $70 million, respectively, from Friday due to the quarterly recapping and rebalancing done by the National Stock Exchange.
State Bank of India (SBI), Power Grid and ICICI Bank will see the highest outflows due to the rejig in weightage across CPSE, Nifty Bank and Nifty50 indices, according to Edelweiss Alternative Research.
On the Nifty50 index, RIL, IndusInd Bank, Tata Steel and Cipla will see their weightage increase while Infosys, HDFC Bank, ICICI Bank, TCS, HDFC and five others will see a lower weightage from Friday when the adjustment comes into effect.
HDFC Bank will see outflows of $15 million in Nifty50 but inflows of $17 million in Nifty Bank due to the rebalancing, resulting in net inflow of $2 million, the research firm noted.
The two stocks that will collectively see selling in Nifty50 and Nifty Bank are ICICI Bank and Kotak Mahindra Bank at $38 million and $30 million, respectively.
The capping factor of stocks in all the Nifty indices is realigned upon change in equity, investible weighted factor, and replacement of scrips in the index. The rebalancing takes place on the last trading day of March, June, September and December.
In the CPSE Index, major inflows will be seen in Coal India at $17 million, in NTPC at $14 million and in Bharat Electronics at $13 million, Edelweiss Alternative Research said.
The stock that will witness substantial outflows is Power Grid at $73 million as its weightage will reduce from 23.2 to 20 percent on the index.
HDFC Bank, ICICI Bank and Kotak Mahindra Bank aside, IndusInd Bank and AU Small Finance Bank will see their weightages on the Nifty Bank Index increase from 4.3 and 1.8 percent to 5.7 and 2.2 percent, respectively. Accordingly, IndusInd Bank will see inflows of $58 million while AU Small Finance will see $17 million.
SBI, whose weightage will reduce from 14.1 to 11.6 percent, will see outflows of $104 million.