rewrite this title and make it good for SEO$394 mn inflows eyed as IHCL, Swiggy, 5 more join Nifty Next 50 in March rejig

The NSE’s semi-annual index rejig is set to take effect on Thursday, March 27, and it’s expected to trigger major shifts in stock flows as it coincides with the monthly derivatives expiry. According to Nuvama Alternative & Quantitative Research, this rejig will impact passive fund flows, with notable changes seen in the Nifty Next 50 Index, where the seven new entrants are expected to attract a combined inflow of around $394 million.

On the inclusion front, Indian Hotels is expected to see the highest inflow at $108 million, followed by Britannia at $85 million, BPCL at $80 million, and CG Power at $60 million.

Other names being added to the index include Hyundai Motor India (with an expected inflow of $31 million), Bajaj Housing Finance (with an expected inflow of $17 million), and Swiggy, which is likely to see a modest inflow of $13 million.

As part of the reshuffle, Zomato, Jio Financial, and BHEL are among the most significant exits from the Nifty Next 50, with expected outflows of $211 million, $108 million, and $40 million respectively.

Other stocks set to move out include NHPC (expected $37 million outflow), Union Bank (expected $34 million outflow), IRCTC (expected $31 million outflow), and Adani Total Gas (expected $24 million outflow).

Also read: Zomato shares drop 5% after BofA downgrades stock to ‘neutral,’ cuts target price to Rs 250These inclusions and exclusions are expected to drive significant volumes from passive index funds, as funds realign their portfolios to match the updated composition of the index.Additionally, a few stocks in the Nifty Next 50 will see weight increases, including Godrej Consumer Products, Torrent Pharma, IndiGo, Cholamandalam Finance, and Vedanta, while there are no weight-down candidates in this reshuffle.

With the semi-annual rejig, Zomato and Jio Financial Services are set to enter the Nifty 50 index, driving combined cumulative inflows of $591 million across passive funds.Meanwhile, the exclusion of Britannia Industries Ltd. and Bharat Petroleum Corp Ltd. (BPCL) is expected to trigger sizeable outflows.

The changes, as part of NSE Indices’ scheduled review, will come into effect after the market closes on Thursday.

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