Index re-balancing to trigger passive inflows, DRL seen as major gainer

Some $900 mn could flow into domestic stocks due to the GEIS rejig; Dr Reddy's could see inflows of $80 mn and Tata Steel could see outflows of $60 mn due to changes in BSE Sensex

Domestic markets are likely to witness a huge bout of inflows on Friday from passive funds as the rebalancing exercise in major indices. Rejig exercise in both FTSE Global Index Equity Index Series (GEIS) and Sensex takes effect on Friday. 

According to an analysis done by Abhilash Pagaria of Edelweiss, as much as $900 million could flow into domestic stocks due to the GEIS rejig. Separately, Dr Reddy’s could see inflows of $80 million and Tata Steel could see outflows of $60 million due to the changes in the benchmark BSE Sensex. 

According to analysts, L&T, Asian Paints, TCS and