Win some, lose some: Nifty indices rebalancing likely to trigger churn

The Nifty Next 50 index, which comprises the top firms outside the Nifty50, is tracked by funds with assets of $500 million

Several frontline stocks are expected to see sizeable churn from passive funds as they realign their portfolios following the rebalancing in the Nifty-branded indices on March 30. Tata Consumer Products, which will be added to the benchmark Nifty50, will likely see the biggest inflow at $101 million, followed by AU Small Finance Bank, to be added to the Bank Nifty.

According to an analysis by IIFL Alternative Research, funds with assets of $17.3 billion are pegged to the Nifty50, while the Bank Nifty is tracked by funds with assets of $3.2 billion.

The Nifty Next 50 index, which comprises the