Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Following shareholder approval of the proposal to reduce the Foreign Ownership Limit from 100% to 49.5%, NSDL has updated the FOL. This starts the process of passive selling in <a href="https://www.smartkarma.com/entities/zomato-ltd" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato</a>.</li>
<li>Passives will sell US$350m at the close on Tuesday. There is a low probability of more selling later in the week. There will be bigger selling in August.</li>
<li>The size of the selling in August and beyond will depend on what foreign investors do in the stock till the end of June. Watch the red flag/ breach list.</li>
</ul>


Following shareholder approval of the proposal to reduce the Foreign Ownership Limit from 100% to 49.5%, NSDL has updated the FOL. This starts the process of passive selling in Zomato.
Passives will sell US$350m at the close on Tuesday. There is a low probability of more selling later in the week. There will be bigger selling in August.
The size of the selling in August and beyond will depend on what foreign investors do in the stock till the end of June. Watch the red flag/ breach list.


Zomato/Eternal: The BIG Passive Selling Starts

Index Rebalance

<ul>
<li>In line with forecasts, <a href="https://www.smartkarma.com/entities/trent-ltd" target="_blank" data-smartkarma-citation="entities:8410:1" rel="noopener">Trent</a> and <a href="https://www.smartkarma.com/entities/bharat-electronics-ltd" target="_blank" data-smartkarma-citation="entities:6636:1" rel="noopener">Bharat Electronics</a> will replace <a href="https://www.smartkarma.com/entities/nestle-india-ltd" target="_blank" data-smartkarma-citation="entities:13101:1" rel="noopener">Nestle India</a> and <a href="https://www.smartkarma.com/entities/indusind-bank-ltd" target="_blank" data-smartkarma-citation="entities:1558:1" rel="noopener">Indusind Bank</a> in the <a href="https://www.smartkarma.com/entities/s-p-bse-sensex-index" target="_blank" data-smartkarma-citation="entities:31494:1" rel="noopener">S&amp;P BSE SENSEX Index</a> after the close of trading on 20 June.</li>
<li>Passive funds are estimated to buy 3-4 days of ADV in the adds and sell 1-10 days of ADV in the deletes. That increase to 3.5-17 days of delivery volume.</li>
<li>
<a href="https://www.smartkarma.com/entities/indusind-bank-ltd" target="_blank" data-smartkarma-citation="entities:1558:1" rel="noopener">Indusind Bank (IIB IN)</a> stock has dropped recently due to a large quarterly loss and allegations of fraud. The stock is also a potential deletion from the <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY Index</a>.</li>
</ul>


In line with forecasts, Trent and Bharat Electronics will replace Nestle India and Indusind Bank in the S&amp;P BSE SENSEX Index after the close of trading on 20 June.
Passive funds are estimated to buy 3-4 days of ADV in the adds and sell 1-10 days of ADV in the deletes. That increase to 3.5-17 days of delivery volume.

Indusind Bank (IIB IN) stock has dropped recently due to a large quarterly loss and allegations of fraud. The stock is also a potential deletion from the NIFTY Index.


SENSEX Index Rebalance: Trent, Bharat Electronics to Replace Nestle, IndusInd Bank

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Thematic (Sector/Industry)

<ul>
<li>Domestic Institutional Investors (DIIs) surpassed Foreign Institutional Investors (FIIs) in Nifty-500 shareholding for the first time in March 2025, signalling a market shift.</li>
<li>We delve into their sectoral bets, where both FII and DII flows moved in unfiorm direction</li>
<li>This shift means more sustainable flows for Indian markets, which can cushion them during a volatile environment.</li>
</ul>


Domestic Institutional Investors (DIIs) surpassed Foreign Institutional Investors (FIIs) in Nifty-500 shareholding for the first time in March 2025, signalling a market shift.
We delve into their sectoral bets, where both FII and DII flows moved in unfiorm direction
This shift means more sustainable flows for Indian markets, which can cushion them during a volatile environment.


Thematic Report: DIIs Surpass FIIs Holdings in India; A Look at Their Sectoral Bets

<ul>
<li>Recent positive Foreign Institutional Investor (FII) inflows into the Indian equity markets may prove short-lived, as a confluence of emerging risks and unattractive relative returns could dampen foreign investor appetite.</li>
<li>While April-May 2025 saw a modest US$0.5 billion in FII inflows, this followed a significant US$13.5 billion outflow during January-March 2025. </li>
<li>Nifty's recent 12% rally since March 2025 leaves only a 2% upside to its year-end target of 25,000. This limited potential return is a key deterrent for FIIs.</li>
</ul>


Recent positive Foreign Institutional Investor (FII) inflows into the Indian equity markets may prove short-lived, as a confluence of emerging risks and unattractive relative returns could dampen foreign investor appetite.
While April-May 2025 saw a modest US$0.5 billion in FII inflows, this followed a significant US$13.5 billion outflow during January-March 2025. 
Nifty's recent 12% rally since March 2025 leaves only a 2% upside to its year-end target of 25,000. This limited potential return is a key deterrent for FIIs.


Thematic Report: FII Inflows in India Might Not Sustain Due to Geopolitical Risks

<ul>
<li>With the review period complete, there could be two changes for the <a href="https://www.smartkarma.com/entities/s-p-bse-sensex-index" target="_blank" data-smartkarma-citation="entities:31494:1" rel="noopener">S&amp;P BSE SENSEX Index (SENSEX INDEX)</a> at the June rebalance.</li>
<li>
<a href="https://www.smartkarma.com/entities/trent-ltd" target="_blank" data-smartkarma-citation="entities:8410:1" rel="noopener">Trent Ltd (TRENT IN)</a> and <a href="https://www.smartkarma.com/entities/bharat-electronics-ltd" target="_blank" data-smartkarma-citation="entities:6636:1" rel="noopener">Bharat Electronics (BHE IN)</a> are high probability inclusions while <a href="https://www.smartkarma.com/entities/indusind-bank-ltd" target="_blank" data-smartkarma-citation="entities:1558:1" rel="noopener">Indusind Bank (IIB IN)</a> and <a href="https://www.smartkarma.com/entities/nestle-india-ltd" target="_blank" data-smartkarma-citation="entities:13101:1" rel="noopener">Nestle India (NEST IN)</a> are high probability deletions.</li>
<li>
<a href="https://www.smartkarma.com/entities/indusind-bank-ltd" target="_blank" data-smartkarma-citation="entities:1558:1" rel="noopener">Indusind Bank (IIB IN)</a> is also a potential <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY Index (NIFTY INDEX)</a> deletion in September and there will be continued pressure on the stock.</li>
</ul>


With the review period complete, there could be two changes for the S&amp;P BSE SENSEX Index (SENSEX INDEX) at the June rebalance.

Trent Ltd (TRENT IN) and Bharat Electronics (BHE IN) are high probability inclusions while Indusind Bank (IIB IN) and Nestle India (NEST IN) are high probability deletions.

Indusind Bank (IIB IN) is also a potential NIFTY Index (NIFTY INDEX) deletion in September and there will be continued pressure on the stock.


SENSEX Index Rebalance Preview: Trent, Bharat Electronics Could Replace IndusInd Bank, Nestle

India

The NIFTY 50 index is National Stock Exchange of India's benchmark stock market index for Indian equity market. Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited.

NIFTY Index (NIFTY INDEX)

Zomato/Eternal: The BIG Passive Selling Starts

Shareholders have approved the FOL reduction from 100% to 49.5% and NSDL has updated their website. That leads to passive selling on Tuesday and...

Brian Freitas

SENSEX Index Rebalance: Trent, Bharat Electronics to Replace Nestle, IndusInd Bank

Trent and Bharat Electronics will replace Nestle and IndusInd Bank in the Sensex from 23 June. The changes were forecast and there is positioning...

Brian Freitas

Thematic Report: DIIs Surpass FIIs Holdings in India; A Look at Their Sectoral Bets

In a market shift, DIIs overtake FIIs in Nifty-500 shareholding for the first time, signaling more sustainable flows for Indian markets.

Nimish Maheshwari

Thematic Report: FII Inflows in India Might Not Sustain Due to Geopolitical Risks

Recent positive FII inflows into Indian equity markets may not last long due to emerging risks and unattractive returns, with Nifty's limited...

Nimish Maheshwari

SENSEX Index Rebalance Preview: Trent, Bharat Electronics Could Replace IndusInd Bank, Nestle

With the review period complete, Trent and Bharat Electronics could replace IndusInd Bank and Nestle in the Sensex in June. IndusInd Bank is also a...

Brian Freitas

Zomato/Eternal: The BIG Passive Selling Starts

Shareholders have approved the FOL reduction from 100% to 49.5% and NSDL has updated their website. That leads to passive selling on Tuesday and...

Brian Freitas

SENSEX Index Rebalance: Trent, Bharat Electronics to Replace Nestle, IndusInd Bank

Trent and Bharat Electronics will replace Nestle and IndusInd Bank in the Sensex from 23 June. The changes were forecast and there is positioning...

Brian Freitas

Thematic Report: DIIs Surpass FIIs Holdings in India; A Look at Their Sectoral Bets

​In a market shift, DIIs overtake FIIs in Nifty-500 shareholding for the first time, signaling more sustainable flows for Indian markets.

Nimish Maheshwari

Thematic Report: FII Inflows in India Might Not Sustain Due to Geopolitical Risks

​Recent positive FII inflows into Indian equity markets may not last long due to emerging risks and unattractive returns, with Nifty's limited...

Nimish Maheshwari

SENSEX Index Rebalance Preview: Trent, Bharat Electronics Could Replace IndusInd Bank, Nestle

With the review period complete, Trent and Bharat Electronics could replace IndusInd Bank and Nestle in the Sensex in June. IndusInd Bank is also a...

Brian Freitas

In a market shift, DIIs overtake FIIs in Nifty-500 shareholding for the first time, signaling more sustainable flows for Indian markets.

Recent positive FII inflows into Indian equity markets may not last long due to emerging risks and unattractive returns, with Nifty's limited...