In a significant reshuffle of the FTSE index, Bharti Hexacom and Go Digit General Insurance shares have made their debut, alongside an increase in the weightage of major players like ICICI Bank, Bajaj Finance, and Kotak Mahindra Bank. The adjustments, which take effect on Monday, December 23, follow the FTSE rebalancing on Friday, December 20, and coincide with the half-yearly Sensex rebalancing.
Flow Estimates from FTSE Rebalancing
The inclusion of Bharti Hexacom is expected to attract $36 million in inflows (equivalent to 2 million shares), while Go Digit General Insurance is set to bring in approximately $19 million (5 million shares).
- Bharti Hexacom shares have seen a notable rise, with a 7% increase in the past month and a 32% gain over the last six months. On Friday, the stock closed at ₹1,499.05, easing by 0.05%.
- Go Digit General Insurance has also performed well, up 8% in one month and over 6% in six months. The stock closed at ₹340.95, rising 2.99% on Friday.
Weightage Changes in FTSE
Along with Bharti Hexacom and Go Digit, 12 other stocks will see their weightage in the FTSE index increase. Notably:
- ICICI Bank is expected to witness inflows of $310 million due to the adjustment, double its average trading volume.
- Kotak Mahindra Bank and Bajaj Finance will also see weightage increases, attracting inflows of $118 million and $66 million, respectively.
Additionally, stocks such as General Insurance Corporation of India, Prestige Estates, Nexus Select, Thermax Ltd, Network 18 Media, Techno Electric, Sansera Engineering, Metro Brands, and PTC Industries will see weightage increases.
Declining Weightage
Conversely, some stocks will experience a decrease in their weightage, including:
- Pfizer
- Torrent Power
- Shriram Finance
- Mahindra & Mahindra
- Adani Green Energy
Adani Green is expected to see the largest outflows, estimated at $48 million, followed by Mahindra & Mahindra at $38 million.
Sensex Rebalancing and Zomato’s Entry
The FTSE reshuffle occurred alongside the BSE Sensex rebalancing. As part of the adjustment, Zomato replaced JSW Steel in the index. Zomato’s inclusion is expected to attract passive inflows of around $513 million, while JSW Steel’s exclusion could lead to outflows of approximately $252 million.
As these major shifts unfold, market participants are keenly watching the impact on stocks and potential inflows during this critical period of year-end adjustments.
