NSE: NSE index rejig to bring inflows of up to $189 million – Blue Barrows

Mumbai: , , , , , , and , among others, will see inflows ranging between $26 million and $189 million on September 30, when the NSE rebalances its key indices such as Nifty 50, Nifty Bank, and CPSE Index, according to Alternative & Quantitative Research.

The bourse is also making changes to its Nifty Next 50 and Nifty IT indices.

Earlier this month, NSE replaced Shree Cement with Adani Enterprises in the benchmark Nifty 50. Domestic passive funds such as index funds and ETFs replicate their portfolios according to the stock weights on these indices. These funds must buy or sell stocks if their weight in the index is increased or reduced in the benchmark.

Shree Cement, , Foods, , and , among others, will see an outflow between $26 million and $56 million, according to Edelweiss.

“The capping factor of stocks in all the NSE indices is realigned upon a change in equity, investible weighted factor, replacement of scrips and periodic rebalancing,” said Abhilash Pagaria, analyst, Edelweiss Alternative & Quantitative Research.