Banking stocks are likely to see a revision in weightage in the Bank Nifty after an index rebalancing exercise by NSE scheduled on Friday. HDFC Bank, IndusInd Bank and AU Small Finance Bank are likely to see the highest fund inflows on account of the increase in weightage, said IIFL Alternative Research and Edelweiss Alternative Research.
HDFC Bank may see inflows of as much as $51 million while IndusInd Bank could see an inflow of $25 million. AU Small Finance Bank could see an inflow of $11.2 million.
“There will be realignment of weight in constituents of Nifty Bank and Nifty Private Bank mainly led by fresh issue of capital in Federal Bank,,” said Edelweiss Alternative Research.
SBI, ICICI Bank, Kotak Bank, and Axis Bank could see a reduction in weightage and outflow of about $9.8 million to $48.6 million. IIFL Alternative Research said could see an outflow or selling of $31.3 million on a likely weightage reduction of 0.84% while SBI could see a weightage reduction of 1.08%, which is likely to lead to selling worth $40.3 million.
