ICICI Bank is expected to attract cumulative inflows of $450 million, with its weightage increasing in the FTSE and MSCI indices, according to Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research.
Nuvama sees a three-day positive price impact. ISEC’s last trading day was March 21, after which it will be removed from FTSE and MSCI Small Cap, a note from the brokerage said, adding that ICICI Bank will witness an increase in share in the FTSE & MSCI indices and a significant float adjustment on the same date.
Adjustments to FTSE’s indices took place after market hours on Friday. An earlier note had said domestic equities may receive net passive inflows in the range of $1.2-1.4 billion following these changes. Kotak Mahindra Bank is expected to see inflows of $146 million. Zomato, ITC Hotels, Bajaj Housing, Brookfield and Gland Pharma are also likely to attract significant flows.
According to Pagaria, Sanofi Consumer, JSW Holdings, Eureka Forbes, Pricol, Aadhar Housing, Brookfield India, Websol Energy and SBFC Finance are among stocks that will see meaningful impact in terms of their average daily volume following changes in index weights.
On Friday, share prices of ICICI Bank, Kotak Mahindra Bank, and Zomato ended more than 1% higher while ITC Hotels and Gland Pharma jumped nearly 6%, Bajaj Housing Finance closed up 4%.