Adjustment Day: Fine 'rebalancing' act for Nifty indices on Wednesday

The quarterly recapping of Nifty indices takes into account the changes in free-float market capitalisation (m-cap) of companies and realigns their weighting

Several stocks on the Nifty indices could see a churn on Wednesday - the adjustment day for the quarterly recapping. The biggest rejig in terms of change in weighting will happen to the Nifty CPSE (Central Public Sector Enterprise) Index, where Oil and Natural Gas Corporation’s (ONGC’s) weighting on the index will increase 320 basis points (bps) and that of NTPC’s and Power Grid Corporation of India’s (PowerGrid’s) will reduce by 152 bps and 87 bps, respectively.

According to calculations done by Abhilash Pagaria of Edelweiss Alternative & Quantitative Research, ONGC will see inflows of $77 million, while NTPC and