FTSE is doing its index reshuffle, so some stocks could see decent buying/selling from passive funds.
On the buying side: Meesho, Lenskart, Infosys, Groww, Airtel and Cupid are among the names expected to see inflows.
On the selling side: Biocon and Wipro are expected to see outflows, along with a few others.
The interesting part for traders is volume. You could see some unusual activity, especially towards the closing bell on Friday as funds adjust their positions.
One thing though these flow numbers are estimates. They don’t automatically mean the stock will go up or down. If the market has already priced in the rebalance, the actual reaction could be quite different.
Market is already looking pretty weak and choppy… and now you’ve got these passive flows coming in.
A $20-25M flow can have a very different impact in a low-liquidity stock vs a large-cap. More curious to see how much of these flows are already priced in and how the actual moves play out…
Last time I saw an MSCI rebalancing, I remember the market plunging around 200+ points, so I’m hoping nothing of that sort happens this time with the FTSE rebalancing.
There could still be some volatility and sharp moves in individual stocks around the closing, but hopefully nothing too dramatic this time.
I’ve been bearish on Nifty recently after it could not rebound after breakdown of 24000, and this setup is honestly making me a bit more cautious. Low volumes, weak price action and then this rebalancing happening, feels like something might be cooking underneath.
Maybe this is just a begining of a big correction, not the whole move. If selling starts picking up, this could be the start of something bigger.