NSE index rejig: ICICI Bank, NTPC to attract passive inflows; BEL, M&M to see outflows

NSE's quarterly rejig for broader indices and semi annual rejig for strategic indices is scheduled for Friday, June 27, 2025. As per Nuvama's calculations -- in terms of changes to Nifty 50, Next 50, Nifty Bank, CPSE, Midcap 150, Smallcap 250, and a few strategic indices -- stocks such as ICICI Bank, NTPC and Kotak Mahindra Bank are likely to attract highest passive inflows, due flow adjustments, driven by changes in free-float weights. Bharat Electronics Ltd (BEL), Mahindra & Mahindra, Eternal, Sun Pharma and Tech Mahindra are among stocks that could attract outflows in value terms, data suggested.

In the case of inflows, Abhilash Pagaria, Head – Alternative & Quantitative Research at Nuvama said maximum average day impact (over 20-day average volume) will be seen on Max Financial Services (3.7 days), HDFC Life (3.5 days), SBI Life (3.2 days), Max Healthcare (2.3 says) and SOIL (1.6 days). In the case of outflows, top ADV impact is seen for Info Edge (2.4 days), Lupin (2 days), Federal Bank (1.9 days), Tech Mahindra (1.8 days) and PB Fintech (1.7 days).

Overall, ICICI Bank is seen attracting $128 million inflows, equivalent to 77 lakh shares. It is seen followed by NTPC ($126 million), Kotak Mahindra Bank ($102 million), Bajaj Finance($91 million) and Bajaj Finserv ( $76 million).

BEL is seen attracting $85 million outflows, followed by M&M ($81 million), Eternal ($69 million), Sun Pharma ($69 million) and Tech Mahindra ($69 million).

In its calculation, Nuvama said it does not have access to the exact weight calculations for strategy indices — given they are governed by exchange-determined capping factors that involve a high degree of subjectivity, it made estimated inclusion and exclusion assessments for select, widely tracked indices.

"Notably, we at Nuvama Alternative Research have focused on the Nifty200 Momentum 30 Index, along with a few other smaller momentum-based indices where meaningful changes are anticipated," Nuvama said.