| Date: |
04-09-2015 |
| Subject: |
Tata Motors DVR, Emami, others surge up to 10% on FTSE rejig |
NEW DELHI: Select stocks such as Tata Motors DVR, Bajaj Finance and Emani surged up to 10 per cent in trade on Thursday on likely rise in inflows after index maintainer FTSE made changes to its FTSE All World index.
Emami, Bajaj Finance, UPL, Tata Motors DVR and Adani Ports and SEZ are seen to be major beneficiaries of the index rejig, Citi India said in a note.
The brokerage estimated that these stocks may see up to $66 million inflows, but others such as Power Grid, HDFC Bank, Axis Bank and Kotak Mahindra Bank may see outflows of up to $35 million, Citi added. (See table).
Emami surged 6.24 per cent to hit an intraday high of Rs 1,293.45 on BSE. Tata Motors DVR surged 11.58 to hit its day's high of Rs 245.70. A rub-off effect was seen on Tata Motors stock, which gained 4 per cent in trade.
UPL was up 3 per cent. Adani Ports and SEZ added 2.78 per cent.
Not much impact was seen on the stocks, which which were seen to be hit the most by the FTSE rejig. In fact, JP Associates was up 4 per cent, while Unitech gained 3 per cent in trade, thanks to overall positive market breadth.
Meanwhile, three stocks — Torrent Pharma, Maruti Suzuki and Grasim Industries — were added to the index. At 11 AM, Torrent Pharma was up 2 per cent. Maruti Suzuki rose 1.71 per cent, while Grasim Industries inched lower.
Overall, the rebalancing of FTSE All World index could lead to additional flows of $180 million into India, believes Citi India.
The index is a subset of the FTSE Global Equity Index Series (GEIS), which covers 98 per cent of the world's investable market capitalisation. The changes to the index constituents will be effective from September 18.
Healthcare (11.61 per cent), banks (10.87 per cent), industrial goods and services (10.94 per cent) and technology remained some of the sectors that have a major weightage on the index.
The index has fallen 8 per cent in the three months to August. It has returned 33.5 per cent in three years and 62.3 per cent in the past five years.
Source : economictimes.indiatimes.com
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