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>We see 8 stocks moving from MidCap to LargeCap, 9 stocks moving from LargeCap to MidCap, 9 stocks from SmallCap to MidCap, and 10 stocks from MidCap to SmallCap.</li>
<li>Following a strong listing, <a href="https://www.smartkarma.com/entities/mankind-pharma-ltd" target="_blank" data-smartkarma-citation="entities:36389:1" rel="noopener">Mankind Pharma (6596876Z IN)</a> should be added to the Large Cap segment of the market in July.</li>
<li>The expected migrations from SmallCap to MidCap have outperformed the other migrations by a huge margin over the last couple of months and there could be profit taking ahead.</li>
</ul>


We see 8 stocks moving from MidCap to LargeCap, 9 stocks moving from LargeCap to MidCap, 9 stocks from SmallCap to MidCap, and 10 stocks from MidCap to SmallCap.
Following a strong listing, Mankind Pharma (6596876Z IN) should be added to the Large Cap segment of the market in July.
The expected migrations from SmallCap to MidCap have outperformed the other migrations by a huge margin over the last couple of months and there could be profit taking ahead.


AMFI Stock Reclassification Preview (June 2023): Significant Outperformance

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/vedant-fashions-limited" target="_blank" data-smartkarma-citation="entities:34260:1" rel="noopener">Vedant Fashions (MANYAVAR IN)</a>' Promoter is looking to raise US$239m via trimming a 7% stake in the firm. </li>
<li>The selldown here is to meet the minimum public shareholding requirement of 25% set by SEBI.</li>
<li>The deal would be a large one to process with the base deal alone representing 187 days of the firm’s three month ADV.</li>
</ul>



Vedant Fashions (MANYAVAR IN)' Promoter is looking to raise US$239m via trimming a 7% stake in the firm. 
The selldown here is to meet the minimum public shareholding requirement of 25% set by SEBI.
The deal would be a large one to process with the base deal alone representing 187 days of the firm’s three month ADV.


Vedant Fashion OFS - Well Flagged and Recent Earnings Momentum Has Been Decent

Index Rebalance

<ul>
<li>On 17 February, NSE Indices announced the results of the March index review for the <a href="https://www.smartkarma.com/entities/nifty-next-50-index" target="_blank" data-smartkarma-citation="entities:36053:1" rel="noopener">Nifty Next 50 Index (NIFTYJR INDEX)</a>. There are 5 adds and 5 deletes. </li>
<li>Last evening, NSE Indices announced a change in the index methodology where the cumulative weight of non-F&amp;O stocks in the index will be capped at 10% (down from 15% earlier).</li>
<li>This changes the flows at the March rebalance that will be implemented at the close of trading on 29 March.</li>
</ul>


On 17 February, NSE Indices announced the results of the March index review for the Nifty Next 50 Index (NIFTYJR INDEX). There are 5 adds and 5 deletes. 
Last evening, NSE Indices announced a change in the index methodology where the cumulative weight of non-F&amp;O stocks in the index will be capped at 10% (down from 15% earlier).
This changes the flows at the March rebalance that will be implemented at the close of trading on 29 March.


NIFTY NEXT50 /​ NIFTY100 Index Rebalance: Flows Change as Index Capping Methodology Changes

<ul>
<li>Nearly halfway through the review period, we see 10 stocks moving from MidCap to LargeCap and vice versa, and 9 stocks moving from SmallCap to MidCap and vice versa.</li>
<li>Financials are poised to be the biggest gainers in the reshuffle with 6 stocks moving from MidCap to LargeCap and 5 stocks moving from SmallCap to MidCap.</li>
<li>Over the last 6 months, stocks expected to migrate upward have outperformed stocks that are expected to migrate downward., though there has been a downward drift this year.</li>
</ul>


Nearly halfway through the review period, we see 10 stocks moving from MidCap to LargeCap and vice versa, and 9 stocks moving from SmallCap to MidCap and vice versa.
Financials are poised to be the biggest gainers in the reshuffle with 6 stocks moving from MidCap to LargeCap and 5 stocks moving from SmallCap to MidCap.
Over the last 6 months, stocks expected to migrate upward have outperformed stocks that are expected to migrate downward., though there has been a downward drift this year.


India: AMFI Stock Reclassification Preview (June 2023)

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Bottom-Up

<ul>
<li>The current slowdown in volume can be attributed to both the broader macroeconomic slowdown &amp; the pausing of the inventory system during the COVID, which has resulted in some mismanagement.</li>
<li>However, the slowdown is not due to a loss of market share, product quality, or adverse distributor policies, indicating a cyclical issue rather than a structural one.</li>
<li>In case of a gradual recovery of the macroeconomic situation and appropriate measures taken by <a href="https://www.smartkarma.com/entities/page-industries-ltd" target="_blank" data-smartkarma-citation="entities:4940:1" rel="noopener">Page Industries (PAG IN)</a> , volume growth may pick up in the future.</li>
</ul>


The current slowdown in volume can be attributed to both the broader macroeconomic slowdown &amp; the pausing of the inventory system during the COVID, which has resulted in some mismanagement.
However, the slowdown is not due to a loss of market share, product quality, or adverse distributor policies, indicating a cyclical issue rather than a structural one.
In case of a gradual recovery of the macroeconomic situation and appropriate measures taken by Page Industries (PAG IN) , volume growth may pick up in the future.


Page Industries (PAG IN) | Cyclical and Not Structural Volume Dip

India

Page Industries Limited develops, produces, and distributes branded underwear for men, women, and children in India and Sri Lanka.

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Page Industries (PAG IN)

AMFI Stock Reclassification Preview (June 2023): Significant Outperformance

With the review period nearing completion, there are a lot of migrations between size segments. SmallCap to MidCap migrations have outperformed....

Brian Freitas

Vedant Fashion OFS - Well Flagged and Recent Earnings Momentum Has Been Decent

Vedant Fashions (MANYAVAR IN)' Promoter is looking to raise US$239m via trimming a 7% stake in the firm. The selldown here is to meet the minimum...

Clarence Chu

NIFTY NEXT50 / NIFTY100 Index Rebalance: Flows Change as Index Capping Methodology Changes

NSE Indices announced a change in the index methodology where the cumulative weight of non-F&O stocks in the index will be capped at 10% (down from...

Brian Freitas

India: AMFI Stock Reclassification Preview (June 2023)

Nearly halfway through the review period, we see 10 stocks moving from MidCap to LargeCap and vice versa, 9 from SmallCap to MidCap and vice versa....

Brian Freitas