FTSE rejig: Bucking the trend, Vishal Mega Mart shares dropped over 1% to trade in the red at Rs 125 apiece.
Vishal Mega Mart, Hyundai Motor, Waaree Energies and Swiggy slated to join FTSE Russell global equity indices on June 20, along with five other stocks.
India’s equity markets are expected to receive $1.4 billion to $1.6 billion in inflows as 14 firms join FTSE's All-World Index post-rebalancing.
KEI Industries, IRB Infrastructure Developers, and Cochin Shipyard are among 13 stocks set to be added to the FTSE All-World Index.
The inflows were led by iShares MSCI India ETF (ticker INDA), Franklin FTSE India ETF (ticker FLIN) and WisdomTree India Earnings Fund (ticker EPI). In total, the three funds received $1.08 billion over the past month, driven by investor optimism over the nation’s growth prospects.
Rejigs in three major indices, FTSE, Sensex and Bharat 22, come into effect from March 15
The FTSE All-World Index is a market-capitalisation weighted index representing the performance of the large and mid-cap stocks from the FTSE Global Equity Index Series. As of January 31, 2024, India's weightage in the index is 2.06%, with 213 stocks.
FTSE will rejig its indices on September 15 as part of its semi-annual review. The changes will be effective from September 18.
FTSE Russell said it has considered client feedback on the potential impact on the company’s foreign headroom if the shares in issue and free-float update are implemented on a one-off basis
The Indian rupee strengthened past the Rs 82 mark to hit a five-week high against the US dollar amid continued buying from foreign investors in the local equity markets.
This will lead to an inflow of approximately $18.5 million, according to Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research. Adjustment date is June 7, 2023.
The rebalancing of FTSE's All World All Cap and S&P BSE's Bharat 22 indices will happen on March 17 and the changes will come into effect on March 20.
It is expected that the inclusion of these stocks in the index's large-cap segment will lead to increased foreign fund flows into the companies
There is not much evidence to suggest that inclusion in bond indices has a major impact on local financial markets, the economist said.
Markets will now look forward to the monetary policy committee outcome today and an index review by JPMorgan Chase in coming days
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The FTSE Index inclusion shouldn’t happen before the September review. Also, it is difficult for the stock to enter the Sensex and Nifty 50 indices in the near term as criteria for those are more stringent
FTSE rebalancing is considered significant for stocks as these influence the fund allocation by global investors as per stock weightage.
The disconnect between economy and the markets isn't limited to Indian and US markets, it is the same world over. Find out which indices have recovered globally despite COVID-19 economic challenges:
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