IDBI Bank, Patanjali Foods enter FTSE, likely inflows keep traders bullish

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The share prices of IDBI Bank and Patanjali Foods gained over 2 percent on February 20 after the stocks were added to the FTSE All World Index. Kotak Mahindra Bank, which was added back to the index after nearly nine years, traded flat in the afternoon.

Inclusion and deletion of stock in indices like MSCI and FTSE are widely tracked since many fund managers benchmark their holdings to them. While Kotak Bank's addition was anticipated, IDBI Bank and Patanjali Foods were the surprises.

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As per Nuvama Alternative & Quantitative Research, Kotak Mahindra Bank could see inflows to the tune of $77 million, Patanjali Foods at $28 million and IDBI Bank at $12 million.

FTSE also topped up the weightings of new-age stocks like Nykaa, Delhivery and Zomato that could see inflows of $61 million, $57 million and $15 million, respectively. All three stocks are trading higher in today's session.

A recast in the Nifty Next 50 index was another significant announcement over the weekend. Varun Beverages, Page Industries, Canara Bank, ABB India and Adani Wilmar have replaced Mphasis, Bandhan Bank, Biocon, Gland Pharma and Paytm in the index.

Expected inflows for Varun Beverages is $35 million, up over 2.4 percent in trade today. Nuvama sees inflows for Page Industries at $28 million, Canara Bank at $24 million, ABB India at $21 million and Adani Wilmar at $9 million.