Nykaa, HDFC AMC among 5 stocks that could see up to $94 million outflows. Here's why

Shares of Nykaa, which have fallen over 44% from its 52-week high of Rs 236 in the last 12 months, will likely see an outflow of $10 million as a result of its exclusion from the Nifty Next50 index. Altogether five stocks will be excluded from the Junior Nifty index, leading to a total outflow of $94 million.

HDFC AMC ($24 million), Page Industries ($27 million), ACC ($19 million) and Indus Towers ($14 million) will also see outflows from passive funds as a result of the reshuffle.

Five stocks that will replace them in the index are Shriram Finance at ($56 million), Tata Group stock Trent ($44 million), TVS Motor Company ($36 million), Punjab National Bank ($21 million) and Zydus Lifesciences ($19 million).

The rejig exercise will likely result in net inflows of $82 million in the index.

Nifty Next 50 currently represents the balance of 50 stocks from the Nifty 100 index, after excluding the Nifty 50 stocks.

While Shriram Finance and TVS Motors fell 1.17% and 0.28%, Trent hit a fresh 52-week high as it rose over 2%. Zydus was up over 1% and PNB 0.28%.

Shares of Page Industries, HDFC AMC, Indus Towers and Nykaa fell between 3.10% and 0.19% around 10 am while ACC was trading with minor gains.

In the Nifty Midcap 150, Avas Financiers, Affle (India), Alkyl Amines, Clean among a host of other companies were excluded, while ACC, Nykaa, Bank of Maharashtra and HDFC AMC were added.

Meanwhile, Bank of Maharashtra, Rail Vikas Nigam, TV18 Broadcast, Triveni Engineering will move out of Nifty Smallcap 100 index. On the other hand, CEAT, CIE Automotive, Equitas SFB, JBM Auto and a few others are added to the index.

The changes will come into effect from September 28. There will be no impact on the Nifty50, Nifty Bank and Nifty IT indices, brokerage firm Nuvama said in its report.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)