Index Rebalancing Updates

12/18: Two important events for India equities are the changes that will be seen to the Sensex and also the inflows anticipated from the rejig to the FTSE Indices. The changes are effective close of trade On December 18th 2020.

SENSEX REJIG
Inclusion: Dr. Reddy
Exclusion: Tata Steel
To be precise are coming to SENSEX
Dr Reddy’s Laboratories Ltd
Divi’s Laboratories Ltd
ICICI Prudential Life Insurance Company Ltd
ICICI Lombard General Insurance Company Ltd

and these are going out
Vedanta Ltd
Tata Steel Ltd
Tata Motors Ltd
IndusInd Bank Ltd

FTSE REBAL
FTSE will implement changes in FOL in FTSE Indexes
FOL: Foreign Ownership Limits
FTSE to spread India FOL led changes in 4 tranches
Current rebal is second tranche , first was in September 2020
Analysts estimate $750 million – 900 million worth inflows in India
India set to see maximum inflows in Asia Pacific region

STOCKS IN FOCUS due to FTSE rebal
Stocks likely to see weight increase due to FTSE rebal

L&T
Asian Paints
TCS
Tata Steel
Bajaj Finance
M&M
Nestle
Britannia
NTPC
Dr. Reddy
IRCTC
Tata Consumer