Falling for fifth straight day, the BSE benchmark Sensex lost 126 points to end at a two-week low with ITC shares plunging over 3.5% after its weight was reduced in the FTSE global equity index series. ITC, which is one of the most influential stocks in 30-share Sensex, closed 3.55% down on heavy selling after index provider FTSE cut the Indian conglomerate's weight in global equity index series from 75% to 24%. ITC was one of the major reasons. It dropped by a wide margin. Towards the end, others like IT stocks also weakened, said Dipen Shah, head PCG Research Kotak Securities. Overall, 23 stocks in Sensex, including L&T, HUL, SBI, HDFC and Infosys, closed with losses. Consequently, the gauge dropped 126 points, or 0.65%, at a two-week low of 19,229.26 points. It has now lost 258 points in five days. Similarly, the NSE 50-share Nifty also declined by 36.50 points or 0.62% to finish at 5,851.50.
ITC drops after FTSE changes free-float weight
Shares of ITC slumped after global index provider FTSE reduced the stocks free-float weight in its global equity index series. The cigarette-maker dropped as much as 4.4% during Thursday's intra-day trade, and ended down R10.85 or 3.54% to R295 on the BSE.
FTSE reduced ITC's investability weight to 24% from 75% in its global equity index series and said that the changes are to be effective from December 24. As per a Citigroup note, alteration may lead to a selling of 3.6 crore shares in ITC, amounting to $200 million. ITC was the second biggest loser amongst the Nifty's 50 constituents. FTSE also increased the weight of Kotak Mahindra Bank's free-float from 33% to 35% and that of Indusind bank to 49% from 24%. Indiusind stock rallied 3.2% before closing at R408.65, up R3.65 or 0.9%. After dropping 1.9% in the day's trade, Kotak bank closed at R652.5, down 1.1%.
Crisil: MFs AUM touches R7.93 lakh cr in November
Rating agency Crisil on Thursday said the mutual fund industry's assets under management during November grew 3.25% to touch R7.93 lakh crore mainly due to inflows of funds into money market. The mutual fund industry's month-end AUM rose 3.25% (R25,000 crore) to R7.93 lakh crore in November, the highest month-end assets for the industry since April 2010. The rise in the AUM was primarily due to inflows into money market funds," Crisil said, quoting the numbers that are part of the monthly release by the Association of Mutual Funds in India (Amfi). Money market saw net inflows worth R11,400 crore, garnering over 91% of the total inflows (of R12,600 crore) seen by the industry in the month. The inflows were, however, lower compared to R18,200 crore in the previous month, Crisil said.