Nifty Sept 29 rejig: IndiGo, Max set for $700 mn inflows; IndusInd Bank may face outflows

InterGlobe Aviation Ltd (IndiGo) and Max Healthcare together may see a combined $700 million in inflows while IndusInd Bank and Hero MotoCorp are likely to see nearly $500 million in outflows, as Nifty indices' semi-annual rejig is scheduled for September 29. It could emerge as an eventful day for investors, with significant passive flows expected across multiple indices, Nuvama noted. 

On a cumulative basis, IndiGo and Max Healthcare are set to receive the largest inflows, attracting approximately $362 million and $340 million, respectively. State Bank of India (SBI) will also see notable passive buying of $80 million, followed by Siemens Energy India Ltd with $53 million and Solar Industries with $46 million. Conversely, the biggest outflows are expected from Hero MotoCorp at $284 million, IndusInd Bank at $205 million, and major companies such as ICICI Bank, Reliance Industries and Housing Development Finance Corporation Limited, each seeing outflows of around $50 million.

Within the Nifty index, two major changes are highlighted. IndiGo Airlines will replace IndusInd Bank, attracting inflows of $545 million, while IndusInd Bank exits with outflows of $217 million. Similarly, Max Healthcare will enter in place of Hero MotoCorp, bringing in $372 million as Hero MotoCorp exits with $309 million. Additional inflows are expected in State Bank of India with $99 million, Indian Tobacco Company with $38 million, and Bajaj Finserv with $19 million, while slight weight reductions in Housing Development Finance Corporation Limited, Reliance Industries and ICICI Bank lead to modest outflows of $66 million, $52 million, and $47 million, respectively.

The Nifty Next Fifty index will also see changes, with Solar Industries, Enrin Limited, Mazagon Dock Shipbuilders and Hindustan Zinc being added. Their inclusion will result in total inflows of over $180 million, led by Solar Industries with $59 million. Making way for them will be IndiGo Airlines, Dabur India, ICICI Prudential Life Insurance and Swiggy, facing combined passive outflows of nearly $300 million, including $184 million from IndiGo Airlines as it moves up to the Nifty.