Nifty Reshuffle: Which stocks will see ₹630–720 Cr inflows and over ₹1,350 outflows after reweighting?

Synopsis:- The latest index rejig is set to trigger  ₹630–720 crore inflows into select stocks, while heavyweights may face outflows exceeding ₹1,350 crore. Driven by passive fund rebalancing, the changes could cause short-term volatility, with long-term returns still tied to earnings strength and fundamentals.

A Nifty rejig refers to periodic changes in index weightages based on market capitalisation and free-float adjustments. These revisions trigger stock inflows and outflows from passive funds, often causing short-term price volatility while reshaping sector representation and investor exposure within the benchmark index.

InFlows

The Nifty rebalancing is expected to drive company-specific inflows, led by Eicher Motors and Maruti Suzuki at Rs 738 crore each, followed by Asian Paints at Rs 729 crore. These inflows reflect higher index weightage and could support short-term buying interest and liquidity in these stocks.

Meanwhile, Hindalco is likely to attract around Rs 720 crore, while State Bank of India may see inflows of about Rs 666 crore. While these numbers indicate near-term passive fund demand, longer-term performance will still hinge on earnings growth, sector cycles, and broader market conditions rather than index-driven flows alone.

Outflows

The Nifty rejig is expected to trigger sharp outflows from heavyweight stocks. ICICI Bank may see outflows of around Rs 1,368, while HDFC Bank could face about Rs 1,341 crore, reflecting reduced index weightage under revised norms. These large numbers may create short-term pressure on prices and trading sentiment.

Other stocks are also likely to see selling pressure, with Bharat Electronics facing Rs 774 crore, Bajaj Finserv Rs 765 crore, and Max Health around Rs 738 crore in outflows. However, these are technical, index-driven moves, and long-term performance will continue to depend on earnings strength and sector fundamentals rather than temporary fund flows.

Index Reshuffle Impact

The inclusion of two new banks in the Nifty Bank index from the January series marks a key structural change. As a result, passive funds will rebalance portfolios, driving fresh inflows and improving liquidity for both newly added constituents and existing members.

According to estimates, the two new entrants could see inflows of Rs 315 crore and Rs 288 crore, while other banks may attract Rs 99–144 crore each. These flows are technical, supporting near-term price action, but long-term performance will still depend on fundamentals.

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