Reliance Industries partly paid up shares are set to see inflows of $165 million worth of flows after being included in the FTSE all world index, said Abhilash Pagaria of Edelweiss Alternative Research. Mindtree, Varun Beverages, Hindustan Aeronautics, Adani Gas, Honeywell Automation and Astral Poly Technik, and Apollo Hospitals are likely to get $20 million to $80 million worth of flows, said Pagaria. The index changes announced last Friday will come into effect on March 19. These stocks have been included in the index while Future Retail has been excluded. Future Retail is likely to see selling of 74 lakh shares or $7.74 million as a result of the adjustment.
The index provider FTSE will be implementing the third tranche of India foreign ownership limit changes. Key inclusions in the Large Cap index include Reliance Partly Paid Up shares, Adani Enterprises and Adani Total Gas while United Breweries and Punjab National Bank have been excluded. FTSE included Honeywell Automation, Hindustan Aeronautics, Apollo Hospitals, Mindtree, Varun Beverages, United Breweries and PNB in the Midcap index while excluding Adani Enterprises and Future Retail.
“While the index manager has proposed to add RILPP in the indices, we will have to assess in the run-up to the re-bal how it will work as the instrument is still a partly paid up one,” said Sriram Velayudhan of IIFL Alternative Research.
