NewsCorporate ActionsNifty 50 Reshuffle: $1 Billion in Passive Flows Expected Across Key StocksNifty 50 Reshuffle: $1 Billion in Passive Flows Expected Across Key Stocks
The NSE Nifty 50 index reshuffle, effective September 30, is expected to generate over $1 billion in passive flows across five stocks. IndiGo and Max Healthcare will enter the index, replacing IndusInd Bank and Hero MotoCorp. IndiGo is projected to receive $545 million in inflows, while Max Healthcare is expected to see $372 million. Other beneficiaries include State Bank of India, ITC, and Bajaj Finserv. Hero MotoCorp and IndusInd Bank face outflows of $309 million and $217 million respectively. The Nifty Next 50 and sectoral indices will also see changes, with four new additions to the Nifty Next 50 and adjustments in the Nifty Bank and CPSE indices.
*this image is generated using AI for illustrative purposes only.
The upcoming reshuffle of the NSE Nifty 50 index, set to take effect on September 30, is poised to generate over $1 billion in passive flows across five key stocks, signaling significant changes in India's benchmark index.
Index Changes
IndiGo (InterGlobe Aviation) and Max Healthcare are slated to enter the Nifty 50, replacing IndusInd Bank and Hero MotoCorp. This move is expected to trigger substantial inflows and outflows as passive funds adjust their portfolios to reflect the new index composition.
Projected Inflows
The reshuffle is anticipated to result in considerable passive inflows for several stocks:
| Stock | Expected Inflows |
|---|---|
| IndiGo | $545.00 |
| Max Healthcare | $372.00 |
| State Bank of India | $99.00 |
| ITC | $38.00 |
| Bajaj Finserv | $19.00 |
IndiGo is projected to be the largest beneficiary, with expected inflows of $545.00 million, followed closely by Max Healthcare at $372.00 million.
Outflows for Exiting Stocks
The stocks departing the Nifty 50 index are expected to face significant outflows:
- Hero MotoCorp: $309.00 million in outflows
- IndusInd Bank: $217.00 million in outflows
Nifty Next 50 and Sectoral Indices
The index rejig extends beyond the Nifty 50, affecting other indices as well:
Nifty Next 50 Additions
Four companies are set to join the Nifty Next 50 index, with projected inflows ranging from $34.00 million to $59.00 million:
- Solar Industries
- Engineers India
- Mazagon Dock
- Hindustan Zinc
Sectoral Index Changes
Various sectoral indices will also see adjustments:
- Nifty Bank: Kotak Mahindra Bank is expected to receive $31.00 million in inflows
- CPSE Index: Power Grid is projected to attract $8.00 million in inflows
Market Impact
This significant reshuffling of the Nifty 50 and related indices is likely to impact trading volumes and stock prices as funds rebalance their portfolios. Investors and market participants will be closely watching these movements, particularly for the stocks experiencing large inflows or outflows.
The changes reflect the evolving landscape of India's corporate sector, with new entrants gaining prominence in the country's most-watched stock index. As passive investing continues to grow in popularity, such index changes can have substantial effects on stock performance and market dynamics.
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