Bank Nifty adjustment on Friday, several stocks likely to see churn

HDFC Bank, IndusInd Bank and AU Small Finance Bank to see highest inflows due to increase in weightage; SBI, ICICI Bank and Kotak Mahindra Bank may see highest outflows

Several banking stocks are expected to see a churn on Friday on account of the rebalancing exercise in the Bank Nifty index. According to analysts, HDFC Bank (inflows of $51 million), IndusInd Bank ($25 million) and AU Small Finance Bank ($11.2 million) will see the highest inflows on account of an increase in their weightage. On the other hand, State Bank of India (outflows of $49 million), ICICI Bank ($38 million) and Kotak Mahindra Bank ($20 million) could see the highest outflows as their weightages have been revised downwards. The Bank Nifty index is tracked by passive funds with assets of $4.5 billion, according to Abhilash Pagaria, analyst at Edelweiss Alternative Research.

Max Health, SKF India, Linde in fray for FTSE addition

Max Healthcare, SKF India and Linde India are the stocks that are likely to get added to the FTSE global indices during a rejig later this month. According to an analysis done by Sriram Velayudhan, vice-president at IIFL Securities, about 8 companies are in fray to get added to the FTSE All World index and 19 are likely to get included in the FTSE All Cap. The total inflows on account of this exercise could be over $300 million. FTSE’s semi-annual review is slated for August 20. The changes announced will take effect on September 17.