Adani Transmission, HDFC Life among stocks that may see fund inflows after FTSE rejig tomorrow

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September 16, 2021 11:02 AM

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.

FTSE rebalancingFTSE 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. (Image: REUTERS)

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 Financial Services: Inflows worth $37 million could be seen in favour of Max Financial Services, according to Edelweiss Alternative Research. The stock has soared 2.4% so far this week.

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.

HDFC, Infosys. Tata Consultancy Services, Hindalco Industries, GAIL, and Grasim Industries could see a reduction in weightage, said Edelweiss Alternative research.

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