FTSE indices to rename HDFC as HDFC Bank post merger; Nuvama sees $1.3 bn inflows

FTSE indices are expected to rename HDFC as HDFC Bank and maintain its current free float shares in the indexes after the merger. MSCI will continue with the half factor for the combined entity, resulting in passive trackers having to sell around $150-200 million. FTSE may also include HDFC Bank shares in its index if there is sufficient liquidity and no foreign ownership restrictions. Despite the merger being the largest in India’s corporate history, the impact is expected to be minimal due to the size of the merged entity.