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

Index Rebalance

<ul>
<li>The <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 was down 27% yesterday following the announcement of Derivatives Portfolio losses that have wiped out 2.35% of equity.</li>
<li>Foreign investors were big sellers in the last 3 months of 2024. That led to increased foreign room, leading to an index upweight in February and index inclusion in March.</li>
<li>The drop in market cap and free float market cap will see <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> deleted from 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> in June and the <a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617:1" rel="noopener">NIFTY Index</a> in September.</li>
</ul>


The Indusind Bank (IIB IN) stock was down 27% yesterday following the announcement of Derivatives Portfolio losses that have wiped out 2.35% of equity.
Foreign investors were big sellers in the last 3 months of 2024. That led to increased foreign room, leading to an index upweight in February and index inclusion in March.
The drop in market cap and free float market cap will see Indusind Bank (IIB IN) deleted from the S&amp;P BSE SENSEX Index in June and the NIFTY Index in September.


IndusInd Bank (IIB IN): Stock Crashes on Derivatives Losses; Index Selling Next

<ul>
<li>We look at the performance of the index rebalance strategy over the year using weekly forecasts. In short, it has been a mixed bag for Asia.</li>
<li>India and China have been among the worst performing markets in the region while Australia and Korea have been among the better performers.</li>
<li>A lot of the outperformance appears to be front loaded, so getting the forecasts right early in the review period is of paramount importance.</li>
</ul>


We look at the performance of the index rebalance strategy over the year using weekly forecasts. In short, it has been a mixed bag for Asia.
India and China have been among the worst performing markets in the region while Australia and Korea have been among the better performers.
A lot of the outperformance appears to be front loaded, so getting the forecasts right early in the review period is of paramount importance.


Index Rebalance Strategy YTD Performance: Not Many Places to Hide in Asia

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Derivatives

Korea Stock Exchange KOSPI 200 / Equity Derivatives

<ul>
<li>
US steel and aluminum tariffs (effective 12 March US time) will take effect on March 13 across the Asia-Pacific region. Volatility can be expected in Japan, South Korea, India, China.</li>
<li>Major quarterly derivatives expirations will occur on March 13 in Japan (Nikkei 225, TOPIX, Stocks), South Korea (KOSPI 200, KOSDAQ 150, Stocks), and India (BSE Stock Futures and Options).</li>
<li>Earnings announcements for <a href="https://www.smartkarma.com/entities/aia-group-ltd" target="_blank" data-smartkarma-citation="entities:14895:1" rel="noopener">AIA Group (1299 HK)</a> and <a href="https://www.smartkarma.com/entities/li-auto-inc-3dbe6187-544f-40dd-b9f9-72fba9c0110e" target="_blank" data-smartkarma-citation="entities:33811:1" rel="noopener">Li Auto (2015 HK/LI US)</a> are scheduled for March 14, while India's markets will be closed that day for the Holi holiday.</li>
</ul>



US steel and aluminum tariffs (effective 12 March US time) will take effect on March 13 across the Asia-Pacific region. Volatility can be expected in Japan, South Korea, India, China.
Major quarterly derivatives expirations will occur on March 13 in Japan (Nikkei 225, TOPIX, Stocks), South Korea (KOSPI 200, KOSDAQ 150, Stocks), and India (BSE Stock Futures and Options).
Earnings announcements for AIA Group (1299 HK) and Li Auto (2015 HK/LI US) are scheduled for March 14, while India's markets will be closed that day for the Holi holiday.


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>A weak rupee is proving to be a major concern for Foreign Institutional Investors (FIIs), triggering $20.2 billion in outflows from Indian equities and bonds since October 2024</li>
<li>The INR has depreciated 2.7% against the US dollar, a trend that has historically coincided with sharp FII exits.</li>
<li>This vicious cycle of rupee weakness → FII selling → more rupee weakness is something we have seen before.</li>
</ul>


A weak rupee is proving to be a major concern for Foreign Institutional Investors (FIIs), triggering $20.2 billion in outflows from Indian equities and bonds since October 2024
The INR has depreciated 2.7% against the US dollar, a trend that has historically coincided with sharp FII exits.
This vicious cycle of rupee weakness → FII selling → more rupee weakness is something we have seen before.


Theamtic Report: Rupee Depreciation - The Key Driver Behind FII Selling in India

Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

<ul>
<li>A review of recent events/data impacting our investment themes or outlook</li>
<li>Is the OpenAI NVIDIA Artificial Intelligence driven bull market over?</li>
<li>The Japanese and Taiwanese stock markets are most at risk</li>
</ul>


A review of recent events/data impacting our investment themes or outlook
Is the OpenAI NVIDIA Artificial Intelligence driven bull market over?
The Japanese and Taiwanese stock markets are most at risk


Overview #17 – Buckle Up, We’re Not in Kansas Anymore!

India

The S&P BSE Sensex Index is a cap-weighted index. The index members have been selected on the basis of liquidity, depth, and floating-stock-adjustment depth and industry representation. Sensex has a base date and value of 100 in 1978-1979. The Index shifted to free-float methodology since 09/01/03. Please see {SNSXOLD Index <GO>} for mid-month options.

S&P BSE SENSEX Index (SENSEX INDEX EQUITY)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

S&P BSE SENSEX Index (SENSEX INDEX EQUITY)

IndusInd Bank (IIB IN): Stock Crashes on Derivatives Losses; Index Selling Next

IndusInd Bank tanked 27% yesterday as Derivative losses wiped out 2.35% of equity. The stock is a potential Sensex and Nifty deletion in the next 3...

Brian Freitas

Index Rebalance Strategy YTD Performance: Not Many Places to Hide in Asia

A positive start to the year for Asia index rebals has turned negative as the momentum/ value unwind began a few weeks ago. Higher volatility and a...

Brian Freitas

The Week Ahead in Options - 10 March

US steel and aluminum tariffs to impact Asia-Pacific markets on March 13. Quarterly derivatives expirations in Japan, South Korea, and India....

Gaudenz Schneider

Theamtic Report: Rupee Depreciation - The Key Driver Behind FII Selling in India

Weak rupee causing $20.2 billion outflows from Indian equities and bonds since October 2024, as INR depreciates 2.7% against USD, triggering FII...

Nimish Maheshwari

Overview #17 – Buckle Up, We’re Not in Kansas Anymore!

A review of recent events/data impacting our investment themes and outlook. We examine some implications of a peaking in the AI narrative-driven...

Rikki Malik

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

IndusInd Bank (IIB IN): Stock Crashes on Derivatives Losses; Index Selling Next

IndusInd Bank tanked 27% yesterday as Derivative losses wiped out 2.35% of equity. The stock is a potential Sensex and Nifty deletion in the next 3...

Brian Freitas

Index Rebalance Strategy YTD Performance: Not Many Places to Hide in Asia

A positive start to the year for Asia index rebals has turned negative as the momentum/ value unwind began a few weeks ago. Higher volatility and a...

Brian Freitas

The Week Ahead in Options - 10 March

​US steel and aluminum tariffs to impact Asia-Pacific markets on March 13. Quarterly derivatives expirations in Japan, South Korea, and India....

Gaudenz Schneider

Theamtic Report: Rupee Depreciation - The Key Driver Behind FII Selling in India

​Weak rupee causing $20.2 billion outflows from Indian equities and bonds since October 2024, as INR depreciates 2.7% against USD, triggering FII...

Nimish Maheshwari

Overview #17 – Buckle Up, We’re Not in Kansas Anymore!

A review of recent events/data impacting our investment themes and outlook. We examine some implications of a peaking in the AI narrative-driven...

Rikki Malik

US steel and aluminum tariffs to impact Asia-Pacific markets on March 13. Quarterly derivatives expirations in Japan, South Korea, and India....

Weak rupee causing $20.2 billion outflows from Indian equities and bonds since October 2024, as INR depreciates 2.7% against USD, triggering FII...