Sensex, FTSE rejig on Sept 15: HDFC Bank shares may see $600 million inflows, says Nuvama

With adjustments to Sensex and FTSE scheduled for September 15, HDFC Bank alone could see $600 million in passive inflows, Nuvama Institutional Equities said on Friday. Stocks such as Axis Bank, State Bank of India (SBI) and Tata Motors may also see some inflows but unsubstantial. Bajaj Finserv, Infosys and Reliance Industries would be among stocks that may see marginal passive outflows, data showed.

"What's particularly noteworthy is that HDFC Bank is set to experience a substantial $600 million inflow as per Nuvama Alternative & Quantitative Research calculations. The HDFC Bank rejig is well flagged off for couple of days now but still we expect 3-4 per cent run up," Nuvama said.

Nuvama said FTSE will be adding HDFC Bank in three tranches, with each quarter witnessing around $500 million of inflow. Sensex (quarterly rejig) weight up will result to $102 million into the stock, it noted.

"When you tally up all the inflows on the same day, HDFC Bank is poised to receive an impressive cumulative inflow of nearly $600 million," the brokerage added. In the case of Sensex rejig, inflows are likely in Axis Bank ($10 million), Bharti Airtel ($9 million), SBI ($8 million), Tata Motors ($3 million).

The key outflows will be seen in Bajaj Finserv ($29 million) Infosys ($22 million) and Reliance Industries ($13 million).  Here’s the complete table:

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