Increase in public float to stoke a $685 million fire in passive buying

Six companies, including three from Adani Group, have seen a sharp increase in their public shareholding this year. This will lead to an increase in their weighting in various global indices, resulting in cumulative net buying of as much as $685 million (Rs 5,628 crore). Meanwhile, UPL and Havells India could see some selling on account of a reduction in their public float.

“We have looked at the shareholding patterns of large companies to check for changes to the free float over the past few quarters, especially where there could be passive flows to the stocks from index trackers. We have found six stocks