Individually, ITC's weighting could increase by 10 basis points to 3.7%, resulting in potential inflows of $59 million, while Airtel's weighting could increase by 10 basis points to 3.6%, resulting in inflows of $36 million.
Two other stocks, Infosys and Mahindra & Mahindra (M&M), may also see investments of $19 million and $11 million, respectively, without any change in their weightage, Nuwama said.
Meanwhile, Larsen & Toubro (L&T), Reliance Industries (RIL), HDFC Bank and Bajaj Auto are expected to witness a combined outflow of $57 million. L&T's weighting could be reduced by 10 bps, leading to outflows of $25 million, followed by RIL ($14 million), HDFC Bank ($10 million), Bajaj Auto ($8 million).
Net inflows would be $68 million. In the Nifty Bank index, no net passive inflows are expected. While Kotak Mahindra Bank, State Bank of India (SBI) and ICICI Bank will see their weightings increase, leading to inflows of $99 million, heavyweights HDFC Bank and IndusInd Bank are expected to suffer losses in this restructuring exercise. While the former's weighting could reduce by up to 190 bps, the latter's weighting could reduce by up to 30 bps. Bank of Baroda, AU Small Finance Bank, Punjab National Bank (PNB), IDFC First Bank and Bandhan Bank will also see their weightings reduced. The inflows will be negated by outflows of a similar amount.
NTPC's weightage in the CPSE index will increase from the present 18.8% to 20%, resulting in investment of $61 million.
The 10 stocks in the index, namely Bharat Electronics Limited (BEL), Coal India, ONGC, NHPC, Oil India, Power Grid, Cochin Shipyard, NBCC, SJVN and NLC India will also see a combined outflow of $60 million.
The burden of other companies except NBCC, SJVN and NLC will be reduced.
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