On July 5, LTIMindtree shares zoomed over 3% to a 52-week high of Rs 5,430 in early trade as it gets slated to swap Housing Development Finance Corporation (HDFC) from the Nifty 50 index from July 13.

LTIMindtree’s inclusion in Nifty 50 comes after the HDFC and HDFC Bank merger, effective from July 1.
Abhilash Pagaria, Head of Nuvama’s Alternative & Quantitative Research, expects passive inflows of about $172 million for LTIMindtree amid its entry into the Nifty 50 league.

He also imagines an outflow of about $50 million amid adjustments in Nifty Next 50, taking the net inflows to somewhere between $125-130 million.
At 9.23 am, LTIMindtree shares were trading at Rs 5,284.25 on the NSE, up 0.6% from the previous close.

Despite prospects of robust inflows for the information technology major, Pagaria believes that most indexes rebalance pre-emptive aligning is well priced in the counter.

Last week, IT company’s shares also suddenly increased in expectation of its inclusion in the headline index. Following the achievement of the amalgamation between the HDFC twins, LTIMindtree will become India’s 50th firm by market capitalisation.

LTIMindtree, too, resulted from a big merger between L&T Infotech and Mindtree in December last year. LTIMindtree commenced trading on the domestic stock exchanges with its new name on December 5, 2022. Ensuring the merger, the combined company now ranks as the country’s fifth-largest IT services provider based on market capitalisation and the sixth-largest based on revenue.