In today’s briefing:
- NIFTY Bank Index Rebalance: Canara Bank IN; Bandhan Bank OUT
- Narrative and Numbers | Housing Finance – PSUs | FY24
- NIFTY50 Index Rebalance: Trent, BEL to Replace Divi’s Lab, LTIMindtree
NIFTY Bank Index Rebalance: Canara Bank IN; Bandhan Bank OUT
- In line with our forecast, Canara Bank (CBK IN) will replace Bandhan Bank Ltd (BANDHAN IN) in the NSE Nifty Bank Index (NSEBANK INDEX) at the close on 27 September.
- Bandhan Bank Ltd (BANDHAN IN) will be deleted from a global index at the close on 31 August, so real float will increase a lot over the next month.
- Passive trackers will need to buy over 2 days of ADV in Canara Bank (CBK IN) and sell 1 day of ADV in Bandhan Bank Ltd (BANDHAN IN).
Narrative and Numbers | Housing Finance – PSUs | FY24
- This Insight focuses on PSU owned Housing Finance companies – PNB Housing Finance Ltd (PNBHOUSI IN) , LIC Housing Finance (LICHF IN) and Can Fin Homes (CANF IN).
- PNB Housing aims to focus on affordable housing, LIC Housing Finance is possibly struggling due to its size and a conservative risk appetite.
- Can Fin Homes exhibits some serious questions regarding its internal controls and underwriting policies.
NIFTY50 Index Rebalance: Trent, BEL to Replace Divi’s Lab, LTIMindtree
- Trent (TRENT IN) and Bharat Electronics (BHE IN) will replace LTIMindtree (LTIM IN) and Divi’s Laboratories (DIVI IN) in the NIFTY Index (NIFTY INDEX) at the close on 27 September.
- Passive trackers will need to trade at least 5 days of ADV and over 11 days of delivery volume in the stocks.
- All the index changes are also changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX) and there will be opposing flows (though much smaller in size) for the stocks.
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