Last updated: July 05, 2023, 3:01 PM IST
LTIMindtree (Image: News18)
LTIMindtree’s inclusion in Nifty 50 comes after the merger between HDFC and HDFC Bank went into effect on July 1.
LTI Mindtree Share Price: Shares of India’s fifth-largest IT company, LTI Mindtree, rose more than 3 percent to hit a new 52-week high during Wednesday’s trading session after the tech giant listed housing finance giant Housing Development Finance Corporation Ltd (HDFC) on the Nifty 50 index on Tuesday.
LTIMindtree’s inclusion in Nifty 50 comes after the merger between HDFC and HDFC Bank went into effect on July 1.
Abhilash Pagaria, head of Nuvama’s Alternative & Quantitative Research, expects passive inflow of approximately $172 million for LTIMindtree as a result of its entry into the Nifty 50 competition.
He also expects outflows of about $50 million due to adjustment in Nifty Next 50, which would put net inflows somewhere between $125 and 130 million.
Despite expectations of strong inflows for the IT major, Pagaria believes most of the index rebalancing preemptive positioning is well priced in the counter.
On the technical front, according to trendlyne data, the stock price rose 33.5 percent and outperformed its industry by 23.3 percent over the past year. So far in 2023, the stock has gained 22 percent.
“Following the announcement of inclusion in the Nifty 50 basket, prices witnessed a strong open, but as this news was already discounted, we are seeing profit bookings from higher levels, the overall trend remains positive and if we continue, a further dip could a buying opportunity, 5,100 is a support, while prices could rise to 5,800 in the near term,” said Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One.