LTI Mindtree Share Price: Shares of India’s fifth largest IT company LTI Mindtree share price gained over 3 per cent and touched a new 52-week high on Wednesday’s trading session after the technology major replaced 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 came into effect on July 1.
Abhilash Pagaria, Head of Nuvama’s Alternative & Quantitative Research, anticipates passive inflows of approximately $172 million for LTIMindtree on the back of its entry into the Nifty 50 league.
He also expects an outflow of around $50 million due to adjustment in Nifty Next 50 which would take the net inflows to somewhere between $125-130 million.
Despite expectations of strong inflows for the information technology major, Pagaria believes most of the index rebalance pre-emptive positioning is well priced in the counter.
On the technical front, as per trendlyne data, the stock price rose 33.5 per cent and outperformed its sector by 23.3 per cent in the past year. So far in 2023, the stock has gained 22 per cent.
“Post the announcement of inclusion in Nifty 50 basket, the prices witnessed a strong gap up opening, however as this news was already discounted, we are seeing profit booking from higher levels, overall trend remains positive and going ahead any further dip would be a buying opportunity, 5,100 is support whereas in the near term prices have potential to move towards 5,800,” said Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One.
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