Stocks Edelweiss Says May See Change In Weight On Nifty Bank, Nifty 50
The changes will be implemented on June 25 and effective from June 26.
Axis Bank Ltd., Kotak Mahindra Bank Ltd. and Hindustan Unilever Ltd. are expected to witness cumulative inflows worth nearly $200 million on account of a likely increase in their weight on the Nifty Bank and Nifty 50 indices.
While Axis Bank’s weight is expected to go up by 2.54% in the banking gauge, attracting fresh inflows of $76 million, that of Kotak Mahindra Bank may increase 1.26%, implying $38 million inflows, according to Edelweiss Alternative Research.
HDFC Bank Ltd.’s weight, however, is likely to decline the most, implying an outflow of close to $152 million, the brokerage said in a report.
On the Nifty 50 Index, HUL’s weight may increase by 0.8%, attracting fresh inflows of $83 million, Edelweiss said. Kotak Mahindra Bank’s weight on the index may see a 0.3% rise.
Reliance Industries Ltd., on the other hand, may see the highest drop in weight on the Nifty 50 Index.
These rejigs are part of the quarterly rebalancing of the Nifty Bank and Nifty 50 Index. The changes will be implemented on June 25 and effective from June 26.
Shares of Axis Bank, Kotak Mahindra Bank, HDFC Bank and RIL dropped 1.58%, 0.33%, 1.04% and 0.05%, respectively, on Thursday, while that of HUL gained 0.4%. That compares with a 0.5% and 0.8% decline in Nifty 50 Index and Nifty Bank.