HDFC Bank stock anticipates $600 mn in inflows from passive trackers

Shares of HDFC Bank will witness massive inflows totalling $600 million from passive trackers this week, predict analysts.

This influx is attributed to the rebalancing activities in the S&B BSE Sensex and the Financial Times Stock Exchange (FTSE) indices.

The Sensex is set for its quarterly rebalancing act on September 15 (date of adjustment), resulting in inflows of $102 million (approximately Rs 850 crore).

Furthermore, the inclusion of HDFC Bank in the FTSE indices is expected to rake in $500 million (around Rs 4,100 crore) in inflows on the same date, as reported by Nuvama Alternative & Quantitative Research.

“FTSE will add HDFC Bank in three tranches, with each quarter bringing in approximately $500 million in inflows. The Sensex’s quarterly rebalancing will add $102 million to the stock. When you sum up all the inflows on September 15, HDFC Bank is poised to receive a remarkable cumulative inflow of nearly $600 million,” observes Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research.

HDFC Bank shares have already outperformed the market over the past three trading sessions, with a 3 per cent increase. In contrast, the Sensex has seen a 1.2 per cent rise during the same period. The Sensex rebalancing will affect 15 of its 30 components in total.

Among other stocks expected to experience inflows, Axis Bank is projected to receive $10 million, and Bharti Airtel $9 million. Meanwhile, Bajaj Finserv is anticipated to see outflows of $29 million, and Infosys $22 million due to reduced weighting.