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

Brian Freitas

Highly experienced ex-Delta One trader with 17 years of experience trading arbitrage and related strategies across Asian markets.

Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd.

It is important to note that the information provided by Periscope Analytics is based on publicly available data and own knowledge, which has been gathered and synthesized from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions.

All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include, but are not limited to, company announcements, exchange filings, ETF and other passive investment vehicle holdings, and free float and volume data from third-party data providers. Periscope Analytics does not guarantee the accuracy and completeness of the forecasts, estimates and/or other information.

Pan-Asia Index Rebalances/ Events/ Delta One

India: Key CAS Test on Monday as Global Index Rebalances

Swiggy (SWIGGY IN): US$380m Passive Selling Tomorrow & Another CAS Test

Zomato/Eternal: Lower Foreign Ownership Limits & The BIG Passive Selling

Swiggy/Eternal: Free Float Increase & Foreign Room Decrease 'Delivering' BIG Passive Flows

Eternal (ETERNAL IN): Foreign Selling Will Lead to Large Passive Buying

Zomato/Eternal: The BIG Passive Selling Starts

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>Foreign investors have continued to sell <a href="https://www.smartkarma.com/entities/eternal-limited" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Eternal (ETERNAL IN)</a> while local mutual funds have been buying. That has led to foreign room increasing above 40%.</li>
<li>Estimated passive buying from global passive index trackers in August is 218.7m shares (US$665m; 6.7x ADV; 12.5x delivery volume) and there appears to be some positioning in the stock.</li>
<li>
<a href="https://www.smartkarma.com/entities/eternal-limited" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Eternal (ETERNAL IN)</a> has outperformed <a href="https://www.smartkarma.com/entities/swiggy-limited" target="_blank" data-smartkarma-citation="entities:35630:1" rel="noopener">Swiggy (SWIGGY IN)</a> in the last 2 months as positioning for the passive buying builds. A lowering of Swiggy's FOL could provide additional impetus.</li>
</ul>


Foreign investors have continued to sell Eternal (ETERNAL IN) while local mutual funds have been buying. That has led to foreign room increasing above 40%.
Estimated passive buying from global passive index trackers in August is 218.7m shares (US$665m; 6.7x ADV; 12.5x delivery volume) and there appears to be some positioning in the stock.

Eternal (ETERNAL IN) has outperformed Swiggy (SWIGGY IN) in the last 2 months as positioning for the passive buying builds. A lowering of Swiggy's FOL could provide additional impetus.


S&P BSE SENSEX Index (SENSEX INDEX EQUITY)

Eternal (ETERNAL IN): Foreign Room Increase & Passive Buying in August