FTSE Index Rebalancing Explained: Check How It Will Impact Your Portfolio Stocks

The Financial Times Stock Exchange (FTSE) indices are set to undergo a rejig effective from March 18, with adjustments slated for March 15. This FTSE rebalancing is expected to bring significant inflows of around ₹14,000 crore into Indian equities, with the BFSI segment likely to witness the highest inflow.

As per analysts, certain stocks are expected to experience a higher impact due to the significant flows compared to their average daily traded volume. The anticipated FTSE rejig has sparked gains in HDFC Bank‘s counter in recent days. The private lender is expected to see inflows of over $450 million on Friday on account of this particular rebalancing.

Other private banks that are expected to see massive inflows are Kotak Bank and ICICI Bank. ICICI Bank could see inflows worth $370 million, while Kotak Bank could see inflows of $149 million. Sundaram Finance and Suzlon Energy are also among the stocks expected to see substantial inflows of over $100 million.

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According to Nuvama, the FTSE All World Index will see the inclusion of 16 stocks, including FACT, Jindal Stainless, Kalyan Jewelers, KPIT Tech, Mazagon Dock, Metro Brands, New India Assurance, NLC India, Phoenix Mills, Poonawalla Fincorp, Prestige Estate, RVNL, SJVN, Sundaram Finance, Suzlon Energy, and Thermax. Meanwhile, Embassy Office Park REIT will be removed from the index.

In the FTSE All Cap Index, 39 stocks will be added, including SJVN, Metro Brands, NLC India, Tata Investment, among others, while Embassy Office Park REIT and Nexus Select will be excluded. Furthermore, in the FTSE Total Cap index, 114 stocks will be added, while 46 stocks will be removed.

Notable inflows are anticipated in names like Phoenix Mills, KPIT Tech, Jindal Stainless, Prestige Estates, Thermax, SJVN, Metro Brands, NLC India, Poonawalla Fincorp, FACT, Kalyan Jewellers, Mazagaon Dock, RVNL, and New India Assurance. The last few names are expected to see flows in the range of $10–$20 million.

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