D-Street set for $800m FPI windfall on FTSE index rejig
The proposed changes will take effect from September 21. Bharti Airtel, Reliance Industries and Infosys are likely to see outfl ows of Rs 933 crore, Rs 500 crore, Rs 250 crore, respectively
FTSE has included SBI Cards, Adani Green, Aurobindo Pharma, Cadila, Tata Consumer, among others, to its large cap index.
Foreign funds could pump in about $800 million into Indian stocks on Friday with global index services provider FTSE adding more stocks or increasing weightages of existing ones as part of the rebalancing of its Global Equity Index Asia Pacific ex Japan and China.
India’s second-largest private sector lender ICICI Bank is likely to be the biggest beneficiary of the rebalancing with an inflow of Rs 1,000 crore. Tata Consumer, Adani Green, Indraprastha Gas and PI Industries are the other stocks that could benefit from the FTSE revamp with an inflow between Rs 400 crore and Rs 650 crore.
Earlier, about $1.5 billion of inflows were expected as a result of FTSE rebalancing. However, on August 27, the index provider excluded three banks – HDFC Bank, Kotak and IndusInd – from the index due to failing minimum foreign headroom requirements.
FTSE has included SBI Cards, Adani Green, Aurobindo Pharma, Cadila, Tata Consumer, among others, to its large cap index. It has added 17 stocks to its midcap index. The proposed changes will take effect from September 21. Bharti Airtel, Reliance Industries and Infosys are likely to see outflows of Rs 933 crore, Rs 500 crore, Rs 250 crore, respectively
