Well in that shader code you quoted all vertices are moved by the same offset, no? Then the normal should stay the same. You'd have to show other code.
The approximation always depends on how you move the vertices, there's no general solution.

My rotation code usually looks something like this:
float effect = InPos.y/32.0; // depends on the model and type of "effect" you want to achieve, this would be for a vertical twist motion
float angle = sin(vecTime.w*0.1)*effect;
float sina = sin(angle);
float cosa = cos(angle);
float oldValue = InPos.x;
InPos.x = cosa*InPos.x - sina*InPos.z;
InPos.z = sina*oldValue + cosa*InPos.z;

If you want to rotate around any other position then the origin/ nullvector, subtract some shift vector or value first, do the rotation and then add the same amount again.