HDFC Bank, RIL may see minor churn as Sensex rebalances on Friday

According to IIFL Alternative Research, HDFC Bank could see buying worth $57 million, while RIL could see selling to the tune of $11 million

HDFC Bank and Reliance Industries (RIL) are expected to see minor churn on account of a rebalancing exercise in the Sensex on Friday.

According to a note by IIFL Alternative Research, HDFC Bank could see buying worth $57 million, while RIL could see $11 million of its stock being sold. Besides, Axis Bank and IndusInd Bank could see some buying, while L&T and HDFC could see the sale of a few thousand shares.

Sensex follows free-float methodology to compute weightages of its 30 components. Experts said index providers undertake periodic rebalancing exercise to adjust for any change in free float shareholding. Based on the changes in weightage, passive funds have to churn their holdings. Currently, the Sensex is tracked by domestic passive funds with assets of more than Rs 60,000 crore.