Kotak Mahindra Bank Added To FTSE Index Nine Years After Being Removed
Private sector lender Kotak Mahindra Bank has been added to the FTSE All-World Index nearly nine years after it was removed. The move follows a sustained decline in foreign portfolio investor (FPI) shareholding in the counter.
Between December 2020 and December 2022, FPI holding in the private sector lender declined from 45.09 per cent to 39.24 per cent, shows BSE data.
The minimum foreign room required for FTSE inclusion is 20 per cent. Currently, the investment legroom for FPIs is around 22 per cent.
Kotak Mahindra Bank was part of the FTSE All-World Index prior to September 2014. However, it got removed from the index after the introduction of the minimum headroom rule in 2014.
FTSE inclusion, analysts said, will positively impact the stock as it will lead to inflows by exchange traded funds (ETFs) tracking the FTSE index. Shares of Kotak Mahindra Bank finished 1.6 per cent lower at Rs 1,760. The index inclusion was widely expected by analysts but the announcement came after market hours.
Besides Kotak Mahindra Bank, other stocks that were added to the FTSE indices include IDBI Bank, APL Apollo Tubes, Indian bank, Patanjali Foods, Solar Industries, Supreme Industries and Vedanta Fashions. The inclusion will come into effect from next month.
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Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd
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