Soon Bharat-22 ETF Will be Listed on an Overseas Exchange
Bharat-22 ETF consists of 22 stocks including that of public sector bluechips and private companies which are strategic holding of Specified Undertaking of Unit Trust of India or SUUTI. These include NALCO, ONGC, Indian Oil Corp, BPCL, Coal India, SBI, PFC, REC, Axis Bank, Bank of Baroda, L&T, ITC, Power Grid and NTPC, among others. The SUUTI stocks and energy stocks which are part of the Bharat 22 ETF have a high weightage in it. So these stocks are likely to see a short covering led rally, according to analysts.
It is believed that the short covering will depend on how oversubscribed the ETF is and likewise how much have people hedged against it.
The government is planning to list Bharat-22 ETF on an overseas stock exchange to unlock its value and raise foreign capital. The government has already raised Rs 22,900 crore through two tranches of Bharat-22 Exchange Traded Fund (ETF) in the domestic markets.
“There have been some initial discussions on whether Bharat-22 ETF can tap the overseas markets,” an official told .
After the government decides on an overseas listing, the investment bankers would assess investor demand and a final call would then be taken on which stock exchange the ETF is to be listed, the official said.