Higher free float to stoke passive flows in Zomato, DLF and Jio Financial

Zomato, DLF and Jio Financial Services are among the nine stocks that will see inflows from exchange traded funds (ETFs) tracking local and global indices. The move follows an increase in free float in these stocks on account of selling by promoters and large institutions such as Life Insurance Corporation (LIC) and Softbank Vision Fund (SVF).

 

More companies could get added to the list as they disclose their shareholding pattern for the September 2023 quarter.

 

“Over the last few weeks, comp­anies in India have been disclosing their shareholding pattern, as of September-end. We have looked at the shareholding patterns of large companies to check for changes to the free float over the last few quarters, especially where there could be passive flows to the stocks from index trackers,” analyst Brian Freitas of Periscope Analytics, who publishes on Smartkarma. He estimates the highest buying worth nearly Rs 900 crore in Zomato, where SVF sold shares worth nearly Rs 1,000 crore in August.

 

DLF is expected to see passive inflows of Rs 650 crore. On August 1, Founder KP Singh divested 0.59 per cent stake in the real estate major to raise Rs 731 crore. Among public sector undertakings (PSUs) stocks, Hindustan Aeronautics (HAL), Rural Electrification (REC) and Power Finance (PFC) will increase their weightage following share sales by LIC. Interestingly, Adani Enterprises and Adani Green Energy too have seen an increase in free float as the promoter group has divested stakes. However, Freitas said this may not result in changes to their weightings. For other stocks, the changes to free float will take place at the close on November 30 in global indices.