Seven Nifty stocks to see an inflow of $68 million post the recapping adjustment that will take place today, said Nuvama Institutional Equities in a note. 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.
It takes into account closing prices as on T-3 basis, where T day is last trading day of March, June, September and December. The changes will be effective on Friday.
In the Nifty pack, Nuvama expects Axis Bank to see $21 million in inflows, followed by Bharti Airtel ($16 million), Adani Ports ($11 million and HDFC Life ($9 million). HDFC Bank ($4 million), ICICI Bank (4 million and BPCL ($3 million) may also see small inflows, Nuvama said.
On the other hand, Nifty stocks Bajaj Finserv, Bajaj Auto, Kotak Mahindra Bank, HDFC and Tech Mahindra are expected to see outflows of $77 million. Bajaj Finserv is likely to see $34 million outflows, followed by Bajaj Auto ($19 million), Kotak Mahindra Bank ($12 million), HDFC ($9 million) and Tech Mahindra ($3 million).
In the case of Nifty CPSE index, Power Grid ($13 million) and NTPC ($12 million) are the only two stocks stock which will see meaningful inflows, while ONGC may see $21 million outflow, said Nuvama.
In the Nifty Bank pack, there is recapping in all the constituents, and key inflows would come in HDFC Bank ($25 million), ICICI Bank ($22 million), IIB ($19 million) Federal Bank ($10 million and AU SFB ($9 million). The highest outflows in the banking pack will be seen in Axis Bank ($78 million and SBI ($32 million), the domestic brokerage said.
The highest outflows are in BJFIN ($34mn |1.1x ADV) and BJAUT ($19mn | 1.7x ADV).
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