NSE Rejig: $94 million cumulative passive inflows seen in NTPC, 2 other PSU stocks, says Nuvama

NTPC's weight on the Nifty CPSE will go up 20% versus the current weight of 17.9%. As for NHPC and NLC, the new weights post the readjustment will be 4.6% and 1.2%, respectively, versus 4.2% and 0.9%, now.

Eight stocks will see their weights go down resulting in passive outflows of $93 million, this report said. is expected to see the highest outflows at $29 million, followed by at $28 million and (BEL) at $20 million.

Others include (OIL, $6 million), ($4 million), ($2 million), ($2 million), ($2 million).

The semi-annual rejig in indices happens based on the performance of stocks. NTPC has rallied nearly 93% over the past 12 months while multibaggers NHPC and NLC have returned 120% and 203%, respectively, during the time.

The adjustments in the index will take place on Wednesday after the market closes.

Not just this, Nifty heavyweight , Jio Financial Services and will also be in focus ahead of the Thursday rejig in Nifty indices. These stocks are expected to be among the biggest beneficiaries of the latest adjustment exercise that could trigger cumulative inflows of over $650 million, according to estimates by Nuvama.

HDFC Bank will likely be the second-biggest gainer from the pack with inflows of $94 million and will only be behind ($260 million), which makes its Nifty debut on Thursday replacing . Meanwhile, Jio Financial Services will likely see inflows of $80 million and Adani Power $45 million, the Nuvama note said.

The rejig exercise will also see significant inflows in six other stocks viz. NTPC ($66 million), Power Finance Corporation (PFC, $45 million), REC ($43 million), Mahindra & Mahindra (M&M, $42 million) Bharti Airtel ($26 million) and Indian Railway Finance Corporation (IRFC $23 million).

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