Nifty reshuffle: These stocks face big inflows and outflows
What's the story
The Nifty indices are set for a major reshuffle today, December 30. The quarterly rebalance will affect several key indices, including the Nifty 50 and Nifty Bank. This change is expected to lead to significant portfolio adjustments as passive funds realign their holdings ahead of the effective date. The changes will be reflected from the start of trading on December 31.
Inflow predictions
Stocks poised for major inflows
According to Nuvama Alternative & Quantitative Research, the stocks set to witness a surge in their index weight and attract significant inflows include Eicher Motors, Maruti Suzuki, Asian Paints, Hindalco Industries, and State Bank of India (SBI). Each of these stocks is expected to see inflows between $70 million and $82 million. SBI alone is likely to witness an inflow of $74 million.
Outflow predictions
Major outflows expected from ICICI Bank, HDFC Bank
On the flip side, heavyweights like ICICI Bank and HDFC Bank are likely to witness major outflows of $152 million and $149 million, respectively. Other stocks likely to see outflows include Bharat Electronics (BEL), Bajaj Finserv and Max Healthcare. BEL is expected to see an outflow of $86 million while Bajaj Finserv and Max Healthcare are likely to witness outflows of $85 million and $82 million, respectively.
Index changes
Nifty Bank index to see new additions
The Nifty Bank index will see Yes Bank and Union Bank added from tomorrow. This is part of a weightage adjustment based on revised norms. The weightages of existing Nifty Bank constituents such as Federal Bank, IDFC First Bank, Punjab National Bank (PNB), IndusInd Bank and AU Small Finance Bank will also be increased during this adjustment process.