FTSE Index Rebalancing: Indian Equities Witness Inclusion of 14 Companies

Market Performance

Indian equity markets are expected to experience inflows ranging from $1.4 billion to $1.6 billion following the latest rebalancing of the FTSE All-World Index. The changes will come into effect after the market closes on March 21, 2025.

Key Updates

As part of this rebalancing, 14 companies have been included in the FTSE All-World Index. The changes reflect an adjustment in index weightings, influencing market movements. Some companies, such as ICICI Bank, Kotak Mahindra Bank, and Zomato, have received weight upgrades, whereas Bajaj Finance has seen a weight reduction.

Additionally, Nexus Select Trust has been removed from the index, with an estimated outflow of $54.6 million.

Companies Added to the FTSE All-World Index

Several Indian firms have been newly included in the FTSE All-World Index, potentially benefiting from increased passive fund inflows. The additions include:

• Bajaj Housing Finance – $48.4 million
• 360 ONE WAM – $25.6 million
• CRISIL – $8.1 million
• Fortis Healthcare – $24.1 million
• Blue Star – $8.3 million
• Ajanta Pharma – $23.8 million
• Premier Energies – $22.2 million
• NALCO – $14.0 million
• IndusInd Bank – $25.5 million
• BSE – $10.4 million
• CDSL – $8.0 million
• Apar Industries – $5.6 million
• Kaynes Technology India – $6.9 million

Weight Upgrades in Key Companies

Several companies have received weight upgrades, indicating increased prominence in the index:

• ICICI Bank – $426.9 million
• Kotak Mahindra Bank – $155.2 million
• Cipla – $30.4 million
• Zomato – $65.0 million
• ITC Hotels – $11.2 million
• Aditya Birla Fashion & Retail – $9.5 million
• Mankind Pharma – $16.0 million
• Godrej Properties – $45.0 million

Weight Reduction

Despite being part of the index, Bajaj Finance has experienced a weight downgrade, leading to an estimated outflow of $41.2 million.

Other FTSE Index Changes

In the FTSE All Cap segment, several new companies have been added, including:

• JSW Holdings
• Sanofi Consumer Healthcare India
• Gland Pharma
• Pricol
• Brookfield India Real Estate Trust
• Triveni Engineering
• Shilpa Medicare
• Raymond Lifestyle

Conclusion

The FTSE All-World Index rebalancing has introduced several Indian companies, potentially leading to significant market movements. While some firms have gained weight upgrades, a few have faced reductions. The overall impact of these changes is expected to be reflected in market activities post-rebalancing.