Scheduled for March 27, the rejig will officially take effect from March 28. The decision to make these changes stems from the routine review conducted by the Index Maintenance Sub-Committee (Equity) of NSE Indices Limited.

In a recent statement to the bourses, the Index Maintenance Sub-Committee revealed, “These changes shall become effective from March 28, 2024 (close of March 27, 2024).”

The semi-annual rebalancing of Nifty Indices is slated for March 28, with preliminary adjustments on March 27. Notably, Shriram Finance Ltd is anticipated to witness approximately $188 million in passive inflows upon its entry into the Nifty index, while UPL Ltd may experience outflows of around $95 million following its inclusion. These estimates were suggested by Nuvama Alternative & Quantitative Research.

According to Nuvama’s projections, Shriram Finance, HDFC Bank, Jio Financial Services Ltd (JFS), NTPC Ltd, Adani Power Ltd, PFC, REC, and Mahindra & Mahindra Ltd (M&M) are expected to attract the highest inflows due to the NSE rejig.

Conversely, State Bank of India (SBI), UPL, ICICI Bank Ltd, ONGC, PI Industries, Coal India, Reliance Industries, and Kotak Mahindra Bank are likely to witness outflows as a result of the rejig.

Nuvama also forecasts that HDFC Bank will receive around $94 million in passive inflows, followed by Jio Financial shares at $80 million and NTPC at $66 million. Adani Power and PFC could see inflows of $45 million each, while REC and M&M may attract $42-43 million inflows each.

In terms of outflows, SBI may see approximately $103 million outflows, ICICI Bank $77 million, ONGC and PI Industries $32 million each, according to Nuvama’s estimates.

In the Nifty Bank, significant inflows are expected in HDFC Bank ($123 million | 0.3 times average daily volumes) and IndusInd Bank ($18 million | 0.3 times ADV), while key outflows may occur in SBI ($95 million, 0.6 times ADV), ICICI Bank ($57 million | 0.2x ADV), Axis Bank ($15 million, 0.1x ADV), and Kotak Bank ($14 million, 0.1x ADV).

In the CPSE Index, NTPC ($71 million, 1.1x ADV), NHPC ($13 million, 0.1x ADV), and NLC ($10 million, 0.4x ADV) are expected to witness inflows, while substantial outflows are projected for ONGC ($29 million | 0.6x ADV), COAL ($28 million | 0.5x ADV), and BHEL ($20 million | 0.3x ADV).

In the Nifty Next 50, inclusion names such as Jio Fin ($80 million), Power Fin ($48 million), Adani Power ($45 million), RECL ($45 million), and IRFC ($23 million) are highlighted, while exclusions comprise Shriram Fin ($72 million), PI Inds ($32 million), Muthoot Fin ($15 million), P&G Health ($12 million), and Adani Wilmar ($7 million), according to Nuvama’s analysis.