The last 30 minutes will be crucial for Dalal Street on Monday as the rebalancing for the Nifty indices will take place during this period. According to a Nuvama Institutional Equities report, passive flows will be seen in a lot of stocks, which will either see an increase or a decrease in their weightage on the respective indices they are part of. This rebalancing exercise is expected to significantly impact market movements during the final trading session.
Bharti Airtel is projected to see the biggest outflows as part of the rebalancing exercise, with Nuvama Institutional Equities estimating outflows worth ₹88 million. Other major stocks facing significant outflows include Eicher Motors and Asian Paints with outflows of ₹69 million each, while Hero MotoCorp, Bajaj Finance and Maruti Suzuki could see outflows of ₹63 million, ₹62 million and ₹61 million respectively. Additionally, AU Small Finance Bank, TVS Motor, Muthoot Finance, IndiGo, Canara Bank, SBI Life, State Bank of India, Paytm, Max Financial Services, Fortis Healthcare and Nykaa are likely to see outflows between ₹30 million to ₹60 million as part of this rebalancing.
Adani Power and GE Vernova T&D are among the stocks primed for significant inflows, with projections of ₹72 million and ₹70 million respectively. Other stocks positioned for inflows ranging from ₹30 million to ₹70 million include BHEL, Tata Steel, Vedanta, Polycab, Bharat Forge, CG Power, NALCO, HDFC Bank, Coal India and Vodafone Idea. MCX is also primed for substantial inflows of ₹80 million, followed by NTPC with ₹77 million and Laurus Labs with ₹73 million.
According to Nuvama Institutional Equities, shares of Coal India, ICICI Bank, Eternal, and HDFC Bank will see an increase in their weightage. This will result in Coal India getting additional inflows of ₹26 million, while ICICI Bank will see inflows of up to ₹9 million, and Eternal and HDFC Bank will see inflows of up to ₹3 million each. For the Nifty Next 50 index, Avenue Supermarts, Hindustan Zinc and Tata Capital will see an increase in weightage, while Adani Energy Solutions and Tata Power could see a decline in weightage.
The rebalancing exercise represents a significant market event that will impact multiple sectors and individual stocks. With projected outflows exceeding ₹2,000 crore and inflows of similar magnitude, this rebalancing is expected to create substantial trading opportunities and volatility during the final trading session. The weightage changes will particularly affect stocks like Bharti Airtel, SBI, L&T, Grasim, and Maruti Suzuki which are expected to see a decline in their weightage, while stocks like Coal India, ICICI Bank, Eternal, and HDFC Bank are positioned for increased weightage and corresponding inflows.
