Bharti Hexacom and Go Digit General Insurance shares are the latest additions to the FTSE index, according to the latest readjustment which also saw an increase in weightage of heavyweight stocks like ICICI Bank, Bajaj Finance and Kotak Mahindra Bank.
The FTSE indices readjustment will be effective Monday, December 23 and the adjustment took place on Friday, December 20. FTSE index rejig coincided with the half-yearly Sensex rebalancing.
According to Nuvama Alternative & Quantitative Research, the addition of Bharti Hexacom shares is estimated to bring in flows of $36 million (2 million shares), while the inclusion of Go Digit General Insurance shares into the FTSE index will attract flows worth around $19 million (5 million shares).
Bharti Hexacom share price has risen over 7% in one month and 32% in six months. On Friday, Bharti Hexacom shares eased 0.05% to close at ₹1,499.05 apiece on the BSE.
Go Digit General Insurance shares have gained 8% in one month and more than 6% in six months. Go Digit stock closed 2.99% higher at ₹340.95 apiece on Friday.
Weight Increase
A total of 12 stocks will witness an increase in their weightage in the FTSE index increase from December 23. ICICI Bank shares are estimated to see inflows of about $310 million next week due to FTSE adjustments, according to Nuvama. This is double of ICICI Bank stock’s average volumes.
Along with ICICI Bank, the weightage of other private lender Kotak Mahindra Bank is also set to increase and the stock is expected to witness an inflow of $118 million. Bajaj Finance shares are projected to witness $66-million worth inflows, as per Nuvama.
Apart from these, stocks that will see an increase in weight on the index are General Insurance Corporation of India, Prestige Estates, Nexus Select, Thermax Ltd, Network 18 Media, Techno Electric, Sansera Engineering, Metro Brands and PTC Industries.
On the contrary, the weightage of Pfizer, Torrent Power, Shriram Finance, Mahindra & Mahindra and Adani Green Energy will decrease in the index. Adani Green is estimated to see the largest outflows worth $48 million, followed by Mahindra and Mahindra (M&M) at $38 million.
Sensex Rejig
FTSE index rejig took place alongside the half-year BSE Sensex adjustment. In the latest rebalancing of Sensex, the new-age tech giant Zomato replaced JSW Steel. The adjustment took place at the close of Friday, December 20.
Zomato’s inclusion in the Sensex is estimated to attract passive inflows of approximately $513 million. On the other hand, JSW Steel’s exclusion is estimated to result in outflows worth $252 million, according to Nuvama.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
