FTSE rebalancing to become effective from March 18; HDFC Bank to likely rake in the highest fund inflow

FTSE or Financial Times Stock Exchange indices rejig will be effective from March 18, while the adjustment will be made on March 15. And this rejig is slated to bring in massive inflows to the tune of Rs 14,000 crore into Indian equities, with the highest inflow anticipated in the BFSI segment.

As per the research desk, the rebalancing is likely to result into an individual stock as listed below:

Inflows 

The slated rejig, which will probably lead to the highest inflows into the country’s leading private banking lender, HDFC Bank, led to some gains in the counter for the last few days. But the broader market weakness spilled on to the heavyweights, and the stock is trading with a drag.

Outflows

As per Nuvama, FTSE All World Index will see the inclusion of 16 stocks, including FACT, Jindal Stainless, Kalyan Jewelers, KPIT Tech, Mazagon Dock, Metro Brands, New India Assurance, NLC India, Phoenix Mills, Poonawalla Fincorp, Prestige Estate, RVNL, SJVN, Sundaram Finance, Suzlon Energy, and Thermax. While Embassy Office Park REIT will be removed from the index.
In FTSE All Cap Index, 39 stocks will be added, including SJVN, Metro brands, NLC India, Tata Investment, etc., while Embassy Office Park REIT and Nexus Select will be excluded.
Furthermore, in the FTSE Total Cap index, 114 stocks will find a place, while 46 stocks shall be removed.