Latest news with #BrianFreitas
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Business Standard
4 days ago
- Business
- Business Standard
Market regulator Sebi move to clip HDFC, ICICI wings in Bank Nifty
The latest measures introduced by the Securities and Exchange Board of India (Sebi) for the futures & options (F&O) segment may adversely impact HDFC Bank and ICICI Bank stocks. Market participants anticipate a churn of nearly $1 billion as passive funds tracking the Bank Nifty and Bankex indices adjust to the new regulations. They expect significant selling pressure, particularly on HDFC Bank and ICICI Bank. Currently, both banking giants carry a weighting of over 25 per cent each in the 12-member Nifty Bank index, a widely followed benchmark in the derivatives segment. In a move aimed at reducing index concentration and volatility, the markets regulator has now capped the weighting of a single stock in non-benchmark indices at 20 per cent. It has also mandated that such indices must include at least 14 constituents, with the combined weighting of the top three components limited to 45 per cent. Experts said Sebi's move came amid fears that thematic indices run the risk of manipulation due to high concentration of individual stocks. These changes, announced by the markets regulator on Thursday, will be implemented by November 3. Brian Freitas of Periscope Analytics, who publishes research on the Smartkarma platform, expects significant outflows from HDFC Bank and ICICI Bank as a result of the changes. He estimates that HDFC Bank could face selling to the tune of ₹2,140 crore, while ICICI Bank may see ₹1,673 crore in sales, in line with the newly imposed 20 per cent cap on weightings. Conversely, Freitas anticipates the inclusion of Yes Bank and Union Bank of India in the Bank Nifty index, taking the total number of constituents to 14. Their additions are expected to trigger inflows of ₹888 crore and ₹600 crore for the respective stocks. Other Bank Nifty components may see inflows ranging from ₹60 crore to ₹400 crore due to redistribution of capital following the reduced weighting of HDFC Bank and ICICI Bank. While the recommendations must be implemented by November 3, it is likely that the index provider will make these changes during the next rebalance in September, according to Freitas. There is a small possibility that the capping changes could be implemented in the June quarter, with the two index inclusions occurring in the September quarter. Alternatively, the capping changes could be rolled out in two phases: The first at the end of June and the second (including the two inclusions) in September, he said. A phased rollout could help in smooth implementation. The churn resulting from the reconstitution of the Bankex will be in addition to this. However, this index is not as widely tracked by passive funds as the Bank Nifty index.
Bloomberg
16-05-2025
- Business
- Bloomberg
Pop Mart, BeiGene Likely to Be Included in Hang Seng Index
Pop Mart International Group Ltd. may be among prime candidates for inclusion in the upcoming review of Hong Kong's stock benchmark, as the index compiler seeks to expand the constituents to better reflect the market's composition. The 'monster run-up' in the toymaker's shares over the past year makes it a potential entrant, Brian Freitas, founder of Periscope Analytics who publishes on Smartkarma, wrote in a note. Short interest in the stock is also trading near the lows.
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Business Standard
11-05-2025
- Business
- Business Standard
Street Signs: Fresh legs for Sensex relay, GIFT brokers eye global play
Trent and Bharat Electronics (BEL) are likely to be added, while IndusInd Bank and Nestle India may be dropped from the 30-stock index, said an analyst Khushboo Tiwari Mumbai Listen to This Article Fresh legs for Sensex relay: Trent, BEL near baton pass The review period for the June rebalance of the BSE Sensex has ended, and changes are expected to be announced four weeks ahead of the June 20 effective date. According to Brian Freitas, an analyst at Periscope Analytics who publishes on Smartkarma, Trent and Bharat Electronics (BEL) are likely to be added, while IndusInd Bank and Nestlé India may be dropped from the 30-stock index. IndusInd also risks exclusion from the NSE Nifty 50 in September. Passive funds could buy shares worth ₹2,700 crore each in Trent and BEL, while
