India is set to benefit from significant equity inflows of $1 billion due to the semiannual rebalancing of the FTSE All World and FTSE All Cap indices, which is scheduled for September 20. This adjustment, according to IIFL Alternative Research, will involve the inclusion of 13 new Indian stocks in the FTSE All-World Index. Prominent companies like KEI Industries, IRB Infrastructure Developers, and Cochin Shipyard are among those to be added.
As a result of the rebalancing, ICICI Bank is expected to receive the largest inflow, around $236 million, followed by Kotak Mahindra Bank with $109 million. These changes are part of a broader $390 million allocation that will flow into various Indian banks, with ICICI Bank, Kotak Mahindra Bank, Aditya Birla Capital, and Tata Technologies set to see increased weights in the index.
Other than this, inflows into Cochin Shipyard would be at $30 million, while KEI Industries can see inflows of up to $53 million. On the other hand, Bank of Maharashtra and Central Bank of India could witness smaller inflows at $12 million and $7 million, respectively. Mahindra & Mahindra, on account of lower weightage, would also face an outflow of $65 million.
In the FTSE All Cap Index, 53 new Indian stocks are to be added, and the leading inflows are Five-Star Business Finance, with an estimated money flow of $14 million; GE T&D India at $11 million; Godfrey Philips India, also at $11 million; and Eris Lifesciences, at $9 million.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
