The NSE Nifty 50 underwent its semi-annual reshuffle on Tuesday, September 30, with InterGlobe Aviation (IndiGo) and Max Healthcare Institute shares entering the benchmark index, replacing Hero MotoCorp and IndusInd Bank shares.
In addition to the constituent changes, the index weightages of State Bank of India (SBI), ITC and Bajaj Finserv shares have been increased.
Inflows and Outflows
IndiGo’s inclusion is expected to attract passive inflows worth $545 million, accounting for 4.9 times its average daily traded volume, while Max Healthcare shares are likely to witness passive inflows amounting to $372 million, according to the Nuvama Institutional Equities report.
Conversely, Hero MotoCorp, the world’s largest two-wheeler manufacturer, is expected to see outflows worth $309 million, while private lender IndusInd Bank may see outflows worth $217 million.
Among companies with increased weightage, SBI is projected to receive inflows of $99 million, followed by ITC at $38 million and Bajaj Finserv at $19 million.
Meanwhile, five existing Nifty 50 constituents could see a reduction in their weightage, triggering passive outflows. HDFC Bank may record outflows of about $66 million, followed by Reliance Industries at $52 million. ICICI Bank could see withdrawals of $47 million, while Bharti Airtel and Infosys are likely to face outflows of $28 million each.
The reshuffle is expected to generate significant trading activity as passive funds rebalance their portfolios to reflect the new index composition.
Nifty Next 50
The Nifty Next 50 index is also seeing a major overhaul as part of the semi-annual rebalancing. Four fresh stocks – Solar Industries India, Engineers India, Mazagon Dock Shipbuilders and Hindustan Zinc – have been included in the index and are expected to receive passive inflows of $34 million to $59 million each.
IndiGo, Dabur India, ICICI Prudential Life Insurance and Swiggy will exit the Nifty Next 50. These stocks could see outflows ranging from $27 million to $184 million, as per the Nuvama report.
Nifty Bank, Midcap and Smallcap Indices
In the Nifty Bank index, Kotak Mahindra Bank, Axis Bank and HDFC Bank will see an increase in their weightage, attracting inflows worth $31 million, $17 million and $14 million, respectively.
The Nifty Midcap 150 and Nifty Smallcap 250 indices will also see significant reshuffling. Hero MotoCorp, IndusInd Bank, Swiggy, Dabur India, ITC Hotels, IDBI Bank and seven other companies are set to be included in the Nifty Midcap 150. Meanwhile, Gland Pharma, Bandhan Bank, Motherson Sumi Wiring India, Emami, Force Motors, Ola Electric Mobility and 12 additional stocks will be added to the Nifty Smallcap 250.
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