These stocks are likely to benefit from FTSE rejig

India is likely to see $700 million to $900 million of overseas flows coming into the equity market on Friday as part of index provider FTSE’s Global Equity Index Series (GEIS) rebalancing. Stocks such as L&T, Asian Paints, TCS and Tata Steel, among others, could witness flows on account of the rebalancing — the second tranche with the first one in September. India is likely to see the maximum inflow on account of this adjustment among Asia Pacific region markets. “L&T will see the highest flows coming its way at $53 million followed by Asian Paints at $52 million and TCS at $47 million. Tata Steel, Bajaj Finance, Mahindra & Mahindra, Nestle India, Britannia Industries and NTPC will see inflows of $30 million to $33 million,” said Abhilash Pagaria, senior manager at Edelweiss Alternative Research. “The highest ADV (Average Daily Volume) impact will be seen in Mindspace, Sundaram Finance and Indiabulls Ventures,” he said. These flows will be the result of the foreign ownership limit changes and the market will see these flows coming today. 79788607Last month, index provider MSCI had said it would tweak foreign ownership limits for Indian stocks in its global indexes on November 27, a move which was estimated to have led passive flows of $2.5 billion into the country. Prior to that, depositories CDSL and NSDL had increased foreign ownership limits for all listed companies to their sectoral limits.

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