FTSE and Bharat 22 indices rejig expected on March 15

The FTSE and Bharat 22 index rebalancing will happen in the trading session on Friday, March 15. All the flows are as per IIFL Alternative Research. The FTSE rebalancing event is a positive net-inflow event as far as Indian markets are concerned. It's a $1.85 billion inflow event.

The FTSE, or Financial Times Stock Exchange, is a group of stock market indices created by the Financial Times and the London Stock Exchange. The FTSE All-World Index is a market-capitalisation-weighted index representing the performance of large and mid-cap stocks from the FTSE Global Equity Index Series.

16 stocks are being added to the main index—the FTSE All-World Index.

There are a couple of stocks where there will be a higher impact given the kind of flows and when one compares it to the average daily traded volume. The first stock is Sundaram Finance, with almost $116 million in inflow, and Suzlon Energy has over $110 million in inflows. The other set of stocks are all in the range of $50–$100 million.

The market will see inflows in names like Phoenix Mills, KPIT Tech, Jindal Stainless, Prestige Estates, Thermax, SJVN, Metro Brands, NLC India, Poonawalla Fincorp, FACT, Kalyan Jewellers, Mazagaon Dock, RVNL and New India Assurance.

The last few names will see flows in the range of $10–$20 million.

Along with that, the Bharat 22 ETF will also see a minor rejig in terms of weight changes. ITC, Axis Bank and State Bank of India (SBI) will see their weight gain. On the other hand, there will be outflows on account of weight decreases in Bharat Heavy Electricals Ltd (BHEL), NTPC and Power Grid.

Very important to note is HDFC Bank—FTSE will go ahead and implement the third and final tranche of its weight increase in this particular rejig. So HDFC Bank will see inflows of over $450 million on Friday on account of this particular rebalancing.