The upcoming Nifty 50 index rejig could potentially lead to inflows worth $657 million, according to domestic brokerage Axis Capital. The rejig will witness the inclusion of BSE which is set to replace Wipro. On the other hand, the rejig could also result in potential fund outflows worth $225 million from the Indian stock market, according to the brokerage.
''The NSE indices rebalancing announcement is due in the second half of August, effective from 30-Sep-2026. To calculate the eligibility for an inclusion or exclusion, the Index Maintenance Sub-committee assumes six-month average data for the prior period from 1 Feb to 31 Jul. Based on the data from 1 Feb to 15 May, we expect 1 constituent change in Nifty 50, 5 constituent changes in Nifty Next 50, and no change in Bank Nifty,'' said Axis Capital in its report.
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Analaysts at Axis Capital added, ''Based on the methodology and the prevaling prices as on 15-May-2024, we expect the toillowing changes.'' The flows are hased on assumed benchmark fund AUMs of $45 billion.
Potential inclusion
-BSE (BSE)
Potential exclusion
-Wipro Wipro
Additionally, Nifty Next 50 could also see several inclusions including Polycab India, Hitachi Energy India, IndusInd Bank, and ICICI Prudential AMC. The potential index exclusions include Indian Hotels, REC, Shree Cement, Zydus Lifesciences, and Lodha Developers. The changes are based on index rebalancing estimates, with the announcement expected in August.
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