Nifty, Nifty Bank rebalancing due effective from December 30. How your stocks could be impacted?

“The capping factor of stocks in all the Nifty Indices is realigned upon change in equity, investible weighted factor (IWF), replacement of scrips in the index, periodic rebalancing and on a quarterly basis on the last trading day of March, June, September and December by taking into account closing prices as on T-3 basis, where T day is last trading day of March, June, September and December,” said Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research.

In Nifty 50 Index, inflows are in Axis Bank ($21 mn), Bharti Airtel ($16 mn), Adani Ports and SEZ or ADSEZ ($11 mn) and HDFC Life ($9 mn). The highest outflows are in Bajaj Finance ($34 mn) and Bajaj Auto ($19 mn), as per the brokerage’s analysis.

In CPSE Index, the Inflows are in Power Grid and NTPC whereas the only stock, as per the brokerage, which will see meaningful outflow is ONGC.

Further, in Nifty Bank, there is recapping in all the constituents, and key Inflows are in HDFC Bank ($25mn), ICICI Bank ($22 mn), IIB ($19 mn), Federal Bank ($10 mn) and AUBANK ($9 mn. The highest outflows are in Axis Bank ($78 mn) and SBI ($32 mn), according to the analysis.

Thus, cumulatively the Top inflows are in HDFC Bank ($29 mn), ICICI Bank ($26 mn), IndusInd Bank ($19 mn), Bharti Airtel ($16 mn), Power Grid ($13 mn) and NTPC ($12 mn). Whereas top outflows are in Axis Bank ($57 mn), Bajaj Finance ($34 mn), State Bank of India or SBI ($32 mn) and Bajaj Auto ($19 mn), as per the research by Nuvama.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.