India’s domestic equity markets are poised to attract inflows ranging from $1.4 billion to $1.6 billion following the market close on March 21. This comes as 14 companies are being inducted into the FTSE All-World Index during its latest rebalancing exercise. These changes are set to be implemented after trading concludes today.

Key Additions to the FTSE All-World Index

Several prominent Indian firms have been added to the global index, including Bajaj Housing Finance, CRISIL, Fortis Healthcare, and BSE. According to IIFL Securities, the expected capital inflows for each company are as follows:

• 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
   

Removals and Outflows

Nexus Select Trust has been dropped from the index, resulting in a projected outflow of approximately $54.6 million. Meanwhile, Bajaj Finance saw a weight downgrade despite remaining in the index, which could trigger outflows to the tune of $41.2 million.

Companies with Upgraded Weightings

Several Indian index constituents have seen weight upgrades, which typically signal stronger investor interest and potential for additional inflows. Beneficiaries of these adjustments include:

• ICICI Bank
• Kotak Mahindra Bank
• Cipla
• Zomato
• Home First Finance
• ITC Hotels
• Aditya Birla Fashion & Retail
   

FTSE All Cap Segment Additions

Beyond the All-World Index, FTSE Russell has also updated its All Cap segment. Newly added companies include:

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

Market Impact and Investor Outlook

These inclusions and exclusions form part of FTSE Russell’s periodic index review, which captures evolving market conditions and corporate performance. Index additions typically draw attention from institutional and passive investors, as fund managers rebalance their portfolios to align with index changes.

Analysts suggest that the increasing representation of Indian firms in global indices reflects both the maturity and depth of the country’s equity markets. With international investors intensifying their focus on emerging economies, index rebalancing events such as this play a significant role in directing fund flows and shaping short-term market trends.