A nifty index change takes effect tomorrow. Check the stocks that will see large inflows and outflows

The quarterly rebalancing of the Nifty Indices, which will take place on December 30, is expected to lead to notable portfolio adjustments in several frontline indices including the Nifty 50 and Nifty Bank.This exercise, which involves aligning index constituents with updated free-float weights and revised methodologies, is likely to result in measurable inflows and outflows into select stocks as passive funds rebalance their portfolios ahead of the effective date.

The quarterly adjustment of the Nifty indices will come into effect at the close of trade on December 30, 2025, the scheduled adjustment date. This means that the changes from the start of trading on December 31, 2025 will be reflected in the indices.For this review, Nuvama Alternative & Quantitative Research has forecast significant fund movements across multiple index components.

These are the most important changes that the research agency predicts:

Among the stocks within the Nifty 50 index that are likely to see a weight gain include Bharti Airtel, which is expected to attract inflows of around USD 58 million. Eternal is also expected to see inflows of approximately $29 million. Other gainers in terms of index weighting include Indigo, Mahindra & Mahindra (M&M) and HDFC Bank, which are estimated to see inflows of between $8 million and $18 million.

On the other hand, Infosys is expected to see outflows of around USD 77 million, making it one of the key sectors to see weight loss. An outflow of about $32 million is also expected from Adani Ports. Other stocks like Reliance Industries, HCL Technologies and Bajaj Finance are also expected to see marginal weight cuts in the rebalancing.

In the Nifty Bank index, which is undergoing methodological changes, Yes Bank and Union Bank of India will be added to the index. Yes Bank is expected to witness an inflow of $35 million, equivalent to 147.2 million shares, while Union Bank is estimated to witness an inflow worth $32 million, equivalent to around 19 million shares.

Nifty Bank weight gain is also expected in Federal Bank, IDFC First Bank, Punjab National Bank, IndusInd Bank and AU Small Finance Bank, with estimated inflows ranging from USD 11 million to USD 16 million.

Meanwhile, the two largest outflows in the banking sector are expected at ICICI Bank and HDFC Bank, with estimated withdrawals of USD 87 million and USD 86 million respectively.

Also read: Kotak Mahindra Bank sets January 14 as record date for upcoming stock split

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)