NSE indices rejig: 6 stocks that may see positive impact tomorrow
Premium- The Nifty indices rejig will take place on March 31, 2022
Apollo Hospitals will replace Indian Oil Corporation (IOC) in the Nifty 50 index, whereas, within Nifty Bank, Bank of Baroda will be included as RBL Bank gets excluded from the banking index, as per the stock exchange's circular released last month, which will be effective from March 31, 2022.
These changes in the index shall become effective from March 31, 2022, Thursday, whereas, the adjustment will take place on March 30, 2021 (Wednesday).
Edelweiss Alternative & Quantitative Research has analysed the flow impact led by inclusion , exclusion and realignment of weights in key Nifty Indices (Nifty 50, Nifty Bank, CPSE Index and Next 50).
As per the brokerage's calculations, stocks which will see meaningful impact in the last thirty to forty minutes on March 30 are the following: Positive impact would be seen in Apollo Hospitals, Bank of Baroda, Power Grid, NTPC, SRF, Mindtree while Negative impact would be seen in Indian Oil (IOC), RBL Bank, IndusInd Bank, AU BANK,ONGC, Aurobindo Pharma and Hindustan Petroleum (HPCL).
"Unlike global index rebalances, in domestic rejigs we see volume and simultaneous price impact happening in the last thirty to forty minutes on the adjustment day. The top actionable names as per our calculations which will see meaningful impact in the last thirty to forty minutes on March 30 are the following. Positive impact would be seen in APHS, BOB, PWGR, NTPC, SRF, MINDTREE while Negative impact would be seen in IOCL, RBK, IIB, AUBANK,ONGC, ARBP and HPCL," said Abhilash Pagaria, Head – Edelweiss Alternative & Quantitative Research.
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The Index Maintenance Sub-Committee - Equity (IMSC) of NSE Indices Limited has decided to make the changes in eligibility criteria of Nifty equity indices and replacement of stocks in various indices as part of its periodic review, NSE's circular had added.
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