Axis Bank surges, RIL falls on FTSE adjustment
Shares of Reliance Industries down by 2.2%
Axis Bank surged about 2.7 per cent on speculation that its weightage in FTSE indices is due to increase, when the index provider rejigs the composition of its benchmarks after the close of markets on Friday.
FTSE announced on March 5 a slew of additions and deletions to its indices. Although it did not announce how the weightage of existing index members would change, traders speculate Axis could benefit.
Axis Bank shares fell as much as 2.6 per cent, as the government has raised more than $900 million by selling a 9 per cent stake in Axis Bank. 'State Bank of India rose 1.4 per cent, on hopes of gaining weightage in FTSE index series,' stated dealers.
By contrast, stocks whose weightage in FTSE indices are expected to fall are being hit: Reliance Industries is down by 2.2 per cent, while Oil and Natural Gas Corporation fell by 3 per cent.