The scheduled Nifty indices rejig has come into effect today, with a quarterly reshuffle for broader indices and a semi-annual rejig for strategic indices, according to data from Nuvama Alternative.
The implementation is expected to trigger index-linked inflows and outflows across several stocks, making today a key session for market participants tracking passive fund movements.
Auto and Consumption Stocks See Strong Index Flows
Among stocks witnessing inflows due to the rejig, Hero MotoCorp leads with estimated flows of $92 million, equivalent to 2.1 times its average daily volume (ADV).
Other auto and consumption names impacted include:
Eicher Motors: $82 million (2.4x ADV)
Maruti Suzuki: $82 million (1.6x ADV)
Asian Paints: $81 million (2.5x ADV)
Hindalco: $81 million (2.0x ADV)
State Bank of India is also seeing inflows of $74 million, though at a relatively lower 0.8x ADV, indicating more modest volume impact.
Banking and financial stocks also feature prominently. Expected inflows include:
Bharti Airtel: $72 million (0.6x ADV)
Kotak Mahindra Bank: $63 million (1.1x ADV)
Federal Bank: $71 million (3.5x ADV)
AU Small Finance Bank: $69 million (3.1x ADV)
The high flow-to-ADV ratios for Federal Bank and AU SFB suggest sharper trading activity as the rejig is implemented.
Also Read: Nifty Bank Rejig: Yes Bank, Union Bank Of India To Join Index From Dec 31 — Check Expected Inflows
Large-Caps, IT, And Defence See Passive Flows
On the strategic index side, several heavyweights are seeing inflows:
ICICI Bank: $152 million (1.2x ADV)
HDFC Bank: $149 million (0.8x ADV)
BEL: $86 million (1.7x ADV)
Infosys: $78 million (0.5x ADV)
Bajaj Finserv: $73 million (4.4x ADV)
HDFC Life: $69 million (3.7x ADV)
Bajaj Finserv and HDFC Life stand out due to elevated flow intensity, potentially leading to higher volatility as per Nuvama Alternative.
Pharma, Healthcare, and Mid-IT Stocks Also Impacted
Other stocks affected by the rejig include:
Divi’s Laboratories: $59 million (5.9x ADV)
Max Healthcare: $58 million (2.2x ADV)
Cummins India: $65 million (3.2x ADV)
Coforge: $41 million (1.4x ADV)
Divi’s Labs shows the highest flow-to-ADV multiple in the sector, indicating the strongest relative impact from passive flows.
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