FTSE Index Rebalancing: Vishal Mega Mart, Hyundai, Swiggy, and More to See Inflow

The upcoming reshuffle in the Financial Times Stock Exchange (FTSE) indices, managed from London, is poised to bring substantial foreign inflows into a range of Indian companies. The revision announcement is expected on June 20, with inflows likely to begin from June 23.

Major Beneficiaries

As per news reports, several Indian stocks are set to benefit from this index rejig. Among the top gainers:

• Vishal Mega Mart: Estimated inflow of $115 million
• Hyundai Motor India: $56 million
• Waaree Energies: $49 million
• Swiggy: $32 million
• NTPC Green Energy: $22 million

These stocks are either being newly added to the index or are seeing increased weightage, triggering buying from passive funds that track FTSE indices.

New Entrants to FTSE Index

The following companies are also slated for inclusion in the revised FTSE list:

• Afcons Infrastructure
• OneSource Specialty Pharma
• Sai Life Sciences
• Inventurus Knowledge

Heavyweights to See Enhanced Weightage and Inflows

Some established names will experience upward adjustments in their FTSE index weightings:

• Reliance Industries: Anticipated inflow of $57 million with an addition of 3 million shares; currently trading at just 0.3x its average daily volume (ADV).
• Bharti Airtel: Estimated inflow of $41 million with 1.4 million shares added.
• Mahindra & Mahindra: Projected inflow of $32 million, with 0.9 million shares added.
• Power Grid Corporation: Likely to receive $31 million in inflows through the addition of 3.4 million shares.
• IndusInd Bank: Expected to gain $12 million, adding 0.3 million shares.

Also Read: SEBI Eases IPO Norms to Boost Startup Listings and Founder Incentives

Impact of Global Index Rebalancing on Stocks

Changes in global indices like FTSE often influence investment flows significantly. An inclusion or increase in a stock’s weight attracts passive fund inflows, as index-tracking funds realign their portfolios. Conversely, deletions or weight reductions typically lead to outflows.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.