Airtel, L&T and TCS to see huge passive inflows as global indices rejig

Apollo Hospitals, Honeywell Automation and Adani Total Gas may see buying due to their entry in FTSE All world index; MSCI rebalancing expected to take place Friday, could spur inflows of over $250 mn

Several domestic stocks are expected to witness inflows from exchange-traded funds (ETFs) over the next few weeks due to rebalancing of their underlying indices.

The FTSE Global Equity Index Series implemented changes to its indices last week, which will become effective March 19. According to an analysis done by Abhilash Pagaria of Edelweiss, Bharti Airtel (inflows of $65 million), Larsen & Toubro ($54 million) and Tata Consultancy Services ($46 million) along with eight other stocks will see buying by passive funds on account of an increase in their weightage. 

 

Meanwhile, Apollo Hospitals Enterprise ($79 million), Honeywell Automation India ($40 million) and Adani Total Gas ($38 million) along with five other stocks will see buying on account of their entry in the FTSE All world (Large cap and Mid cap) index. Most of these stocks ended in the green despite the overall sell-off.

Pagaria pegs the total inflows on account of the FTSE rebalancing at over $800 million into domestic equities.

Meanwhile, the MSCI rebalancing announced earlier this month is expected to take place on Friday and could result in inflows of over $250 million, he said.