Tata Motors CV and HDFC AMC seen entering Nifty Next 50, shows data

Tata Motors and HDFC AMC may see strong passive inflows in Nifty Next 50 rejig, while Info Edge and ICICI Lombard face likely exclusion

The upcoming rebalancing of the Nifty indices is expected to trigger a significant reshuffle in the Nifty Next 50, with Tata Motors (commercial vehicle) and HDFC Asset Management Company emerging as the key beneficiaries. 

On the other hand, Info Edge and ICICI Lombard General Insurance are likely to be among the five constituents facing exclusion. 

According to an analysis by Nuvama Alternative & Quantitative Research, Tata Motors could attract passive inflows of around ₹1,296 crore after its inclusion. HDFC Asset Management Company and Muthoot Finance are also expected to benefit, with estimated inflows of approximately ₹734 crore and ₹625 crore, respectively. Tata Capital and ICICI Prudential Asset Management are also seen entering the index, with inflows of about ₹172 crore each. On the exclusion side, Info Edge (India) is expected to see the largest outflows, estimated at around ₹716 crore, followed by ICICI Lombard General Insurance at ₹643 crore. Havells India and JSW Energy may see outflows of roughly ₹471 crore and ₹344 crore, respectively, while Bajaj Housing Finance could face selling pressure of about ₹127 crore. 

Nuvama does not expect any changes to Nifty 50. However, the Nifty Midcap 100 may see as many as nine new additions, including LG Electro­nics India, Lenskart, Groww, Meesho, and MCX. The official announ­cement is expected in the latter half of February, with the index changes set to take effect on March 30.