Quarterly Index rebalance to be effective from September 30: Here’s what to expect

The quarterly index rebalance in major indices like the Nifty and the Nifty Bank will be effective from September 30, which means the adjustments will take place on September 29.

The act of rebalancing comes after an index rejig which can be done in various methods by adding new stock to the index, removing a particular stock from the index, or even increasing or decreasing the weightage of existing stock in the index.

According to Edelweiss, there will be a buy inflow in stocks like SBI of close to $100 million, and in Axis Bank close to $58 million as far as the Nifty Bank index is concerned. However, at the same time, there will be outflows in four bank stocks— HDFC Bank (close to $82 million), Bandhan Bank and Federal Bank (close to $10 million), and IndusInd Bank (close to $40 million).