Zomato, JFS, VBL shares likely to see passive inflows, HAL & Tata Power to see outflows; here's why

The quarterly adjustments due to rejig in Nifty50, Nifty Bank, CPSE and Next50 indices are likely to result in passive inflows for stocks such as Zomato Ltd, Jio Financial Services Ltd and Varun Beverages Ltd and outflows for Hindustan Aeronautics Ltd (HAL), Tata Power Company Ltd and BHEL Ltd, data compiled by Nuvama Institutional Equities suggests.  

The Nifty indices quarterly adjustments is scheduled today and since it primarily involves float-led weight adjustments, the impact is expected to be relatively muted. Zomato Ltd may attract the highest inflows due to passive buying. It is expected to see buying to the tune of 9.3 crore shares worth $299 million.

JFS shares may see inflows of $113 million, followed by Varun Beverages ($98 million), HCL Technologies Ltd ($78 million) and Sun Pharma ($76 million). Federal Bank, Avenue Supermarts, JSW Energy, Voltas, Union Bank, Coforge and NHPC are some other stocks that are expected to see strong inflows. 

On the flipside, HAL is seen registering outflows to the tune of $107 million. Power Finance Corporation Ltd (PFC) may see $97 million outflows. Tata Power Company Ltd ($92 million), Coal India ($74 million) and Bajaj Auto Ltd ($74 million) may also see outflows. 

Nifty delivered 9.48 per cent return in 2024 while the banking benchmark Nifty Bank offered 6.69 per cent return for the calendar. Nifty Next 50 was up 28 per cent during the same period. 

Last week, Zomato replaced JSW Steel as Sensex constituent on Monday, December 23. The inclusion likely resulted in over $500 million in passive inflows for Zomato and over $250 million in outflows for JSW Steel. Mahindra & Mahindra Ltd, ITC Ltd, Infosys Ltd and Sun Pharma were among Sensex stocks, which were expected to see marginal passive outflows due to reduction in their weightages in the 30-pack index.