Nifty rejig: Adani Wilmar, Canara Bank included. Which stocks likely to see higher inflows?

The Index Maintenance Sub-Committee (Equity) of NSE Indices Limited has decided to make replacement of stocks in various indices as part of its periodic review as listed hereunder. These changes shall become effective from March 31, 2023 (close of March 29, 2023).

The following stocks are being included: ABB India Ltd with expected inflow of $21 million, as per data analysed by brokerage Nuvama Research; Adani Wilmar Ltd (AWL) – with expected inflow of $9 million; Canara Bank (expected inflow of $24 million); Page Industries Ltd (expected inflow of $28 million); and Varun Beverages Ltd (expected inflow of $35 million).

The official announcement by Nifty Indices has exactly been in line with Nuvama Research’s expectations of a status quo for Nifty 50, Nifty Bank and Nifty IT Index. The changes in Nifty Next 50 is also in inline with the brokerage house’s expectations. The Rejig will take place on March 29, 2023 and will be effective from March 31, 2023.

The capping factor of stocks in all the National Stock Exchange (NSE) Indices is realigned upon change in equity, investible weighted factor (replacement of scrips in the index, periodic rebalancing. The rejig on a quarterly basis takes place on the last trading day of March, June, September and December.

The rebalance takes into account closing prices as on T-3 basis, where T day is last trading day of March, June, September and December. The rebalancing includes addition of a new stock to the index, or removing a particular stock. It also may lead to increasing or decreasing the weightage of existing stocks in the indices.

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