What will be the impact of FTSE rejig
Overall it can be witnessed that inflows are bigger than outflows and due to that it is expected that there will net inflow of $150-200 million dollars in stocks.
There are few indices in the world that captures the eyes of investors across the globe. FTSE is one such index that stands for Financial Times Stock Exchange. This index is tracked by passive funds across the world. Now there is rejig in the index. Under which weightage of some stocks will be increased/decreased while some stocks will be added/removed from the index.
Stock that will be added or their weightage will be increased will witness the inflow of funds. While the stocks in which weightage will decrease or will be removed from the index will witness an outflow of money. So Nuvama Institutional Equities have made a report on which shares will witness inflow and outflows due to rejig in FTSE Index.
As per Nuvama, the companies that will gain the most are the conglomerates that are defining India. That is Adani Enterprise and RIL. Adani Enterprise will witness an inflow of $71 million and RIL will have an inflow of $68 million. In 3rd position is Wipro which would witness an inflow of $32 million. 4 Adani group companies in the list will witness inflow.
Companies to witness inflow after FTSE rejig
Source: Nuvama Institutional Equities
Some companies would witness outflow due to rejig. On top of that list is Infosys. It will witness an outflow of $34 Million. Hcl tech and TCS are also part of the list. This shows the impact of tough times on the Indian IT sector.
Companies to witness outflow after FTSE rejig
Source: Nuvama Institutional Equities
Overall it can be witnessed that inflows are bigger than outflows and due to that it is expected that there will net inflow of $150-200 million dollars. One thing to keep in mind is that impact of all these rejig happens in the short term and for long term purpose, it is important to look at the fundamentals of the company.