Adani Transmission, Hatsun Agro Product, and HDFC Life Insurance could be the largest beneficiaries in fund inflows, at the next semi-annual FTSE index rebalancing.
Adani Transmission, Hatsun Agro Product, and HDFC Life Insurance could be the largest beneficiaries in fund inflows, at the next semi-annual FTSE index rebalancing scheduled for tomorrow, according to Edelweiss Alternative Research. In a note, Abhilash Pagaria of Edelweiss wrote that Adani Transmission could see inflows worth $116 million (about Rs 850 crore) while Hatsun Agro is likely to witness $110 million (about Rs 808 crore) in inflows. FTSE Russell, a global provider of indices, rebalances its indices twice a year, changing weights of various constituents according to their performance over the previous months among various other parameters.
Stocks likely to see inflows
Adani Transmission: The Gautam Adani Group company is expected to see inflows worth $116 million. Adani Transmission is not part of FTSE All-World index or the India index. So far this week, Adani Transmission share price has soared 10% to now trade at Rs 1,971 per share.
HDFC Life Insurance: The stock could see inflows worth $55 million (about Rs 404 crore) on account of FTSE semi-annual rebalancing. The stock is part of the FTSE All-World index with 0.01% weightage and 0.63% weightage in the India index. HDFC Life stock has jumped 2% this week to trade at Rs 749 per share.
Max Healthcare: Share price of Max Healthcare was up and running this week but is down more than 2% today. Inflows worth $37 million are expected for the company.
Hatsun Agro Product: The stock is expected to witness inflows worth $110 million, according to Edelweiss Alternative Research. Hatsun Agro is not a part of the FTSE All-World index or the India index. Hatsun Agro share price has soared 10% this week.
Other stocks that may witness inflows include Laurus Labs ($36 million); Aarti Industries ($34 million); Carborundum Universal ($30 million); Gujarat Fluorochemicals ($22 million); Alkyl Amines Chemicals ($21 million); KPIT Technologies ($21 million); and Aster DM ($20 million).
Apart from the FTSE semi-annual rejig, analysts at Edelweiss Alternative Research also highlighted that the US-based WisdomTree India Earnings Index will see its annual reconstitution on Friday as well. India Oil, Vedanta, Jindal Steel & Power, and Infoedge are expected to be added to the fund. These stocks could see inflows worth $19.2 million to $3 million. Meanwhile, Reliance Industries, Bharat Petroleum, Hindustan Petroleum Corporation, Axis Bank, and ICICI Bank are expected to see an addition to their weights.