Finance, Other, Wind

Suzlon dropped out of the FTSE global indices on the London Stock Exchange

According to reports, Tata Consultancy Services, India’s biggest IT outsourcer, is likely to be the biggest beneficiary on account of the re-balancing of the FTSE global indices on the London Stock Exchange.

The changes are a part of the quarterly review and will be effective from March 18, 2013.

Tata Consultancy Services is likely to gain additional weightage on the FTSE global index, prompting buying from passive trackers of the FTSE indexes. Foreign Institutional Investors (FIIs) holding is likely to go up by 0.15 per cent in TCS, which will translate into an inflow of $82 million, global investment bank Citi said. FIIs currently hold a 14.96 per cent stake in TCS.

TCS shares have outperformed the broader markets over the last month, gaining 10 per cent against a 1 per cent rise in Sensex. The stock is trading near its all-time high.

In all, eight Indian stocks would be added to the FTSE global index, which is likely translate into $279 million (Rs. 1,500 crore) of fresh inflows.

Iron-ore miner NMDC, private lenders YES Bank and IndusInd Bank; drug maker Wockhardt; Godrej Consumer Products and GSK Consumer, United Breweries Limited and Shree Cements are the stocks being inducted on the FTSE global index. However, wind turbine maker Suzlon has been dropped from the list.

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