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In the upcoming Nifty September Review, according to brokerage Edelweiss Alternative & Quantitative Research's preliminary analysis for Nifty indices, it believes that IT stock Persistent Systems can dislodge L&T Tech Services (LTTS) in the Nifty IT index.

Persistent Systems inclusion will lead to positive flows of about $20 million whereas, exclusion of L&T Tech may see estimated outflows of $17 million, said the brokerage. The only risk factor, as per Edelweiss, is of any sharp contra price move in either of the probable names can lead to a change in conviction. 

Persistent Systems shares have risen over 49% in a year's period whereas, the IT stock is down more than 23% in 2022 (YTD) so far. Persistent Systems provides digital engineering and data and artificial intelligence products to the software, banking, financial services and healthcare sectors.

Meanwhile, in a year, LTTS shares are up about 30%, however, have fallen 39% since the beginning of this year. L&T Tech, part of conglomerate Larsen & Toubro group, is involved in engineering and R&D (ER&D) services.

Edelweiss Alternative & Quantitative Research has carried out a pre-emptive analysis of the Semi-Annual Index (SAIR) September 2022 Rejig for Nifty indices. The index provider will officially announce the list in the second half of August 2022. The cut-off date is July 29 whereas the announcement is expected to be in the second half of August and rebal date is September 30, 2022.

Meanwhile, according to Edelweiss' preliminary analysis, Adani Enterprises holds a high chance to dislodge Shree Cements in the Nifty 50 index in the upcoming review. Shree Cements has a higher probability of being excluded while the next name on radar would be Hero Motors.

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