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Informist, Friday, Aug 23, 2024

 

--NSE: To drop Divi's Lab, LTIMindtree from Nifty 50 from Sep 30

--NSE: To include Bharat Electronics, Trent in Nifty 50 from Sep 30

--NSE: To drop Berger Paints, Colgate from Nifty 100 from Sep 30

--NSE: To drop Marico, SBI Cards, SRF from Nifty 100 from Sep 30

--NSE: To include BHEL, JSW Energy, NHPC in Nifty 100 from Sep 30

--NSE: To include Macrotech Developers in Nifty 100 from Sep 30

--NSE: To include Union Bank of India in Nifty 100 from Sep 30

 

MUMBAI – Bharat Electronics Ltd and Trent Ltd will replace Divi's Laboratories Ltd and LTIMindtree Ltd in the equity market benchmark Nifty 50 index from Sep 30, National Stock Exchange's wholly-owned subsidiary NSE Indices said in a press release. The changes were announced today as part of the semi-annual review of the Nifty equity indices' composition and criteria.

 

The Nifty 50 rejig will lead to selling pressure in the shares of Divi's Laboratories and LTIMindtree on the trading day before the change is effected as index funds and index exchange-traded funds from the domestic mutual fund industry and Nifty 50-tracking offshore funds sell these two stocks to realign their portfolios with the index. On the other hand, Bharat Electronics and Trent will see buying interest from these very funds.

 

NSE Indices said it decided to add Trent and Bharat Electronics to the Nifty 50 because the two stocks meet the criterion of their average six-month free-float market capitalisation being more than 1.5 times that of the smallest Nifty 50 constituents, LTIMindtree and Divi's Laboratories. The index company said it also considered adding the next two eligible companies, Hindustan Aeronautics Ltd and Tata Power Co Ltd, but decided against it since their respective free-float market cap was less than 1.5 times that of the two next smallest constituents, Bharat Petroleum Corp Ltd and Eicher Motors Ltd, after excluding the outgoing constituents, LTIMindtree and Divi's Laboratories.

 

The stocks in Nifty 50 and Nifty Next 50 come from the universe of Nifty 100, and all Nifty 100 stocks that are not in Nifty 50 are a part of Nifty Next 50. In today's review, the exchange's arm reshuffled the Nifty 100 to exclude Berger Paints India Ltd, Colgate-Palmolive (India) Ltd, Marico Ltd, SBI Cards and Payment Services Ltd, and SRF Ltd, and to include Bharat Heavy Electricals Ltd, JSW Energy Ltd, Macrotech Developers Ltd, NHPC Ltd, and Union Bank of India.

 

The index company also announced inclusions and exclusions from other broad-based Nifty indices such as the Nifty Midcap 150, Nifty Smallcap 250, Nifty 500, Nifty 200, and Nifty Microcap 250. These changes will also be effective from Sep 30.

 

In the case of sectoral indices, NSE's arm said it has decided to drop Bandhan Bank Ltd and add Canara Bank in the Nifty Bank index. In Nifty Financial Services Ex-Bank, One97 Communications Ltd will be excluded and Indian Railway Finance Corp will be included from Sep 30. Replacements were also effected by the index provider in other sectoral indices Nifty Realty, Nifty MidSmall IT & Telecom, and Nifty Pharma, which will be effective from Sep 30. Further, the strategy index, Nifty Top 10 Equal Weight, will see Hindustan Unilever Ltd being dropped and Bharti Airtel Ltd being included from Sep 30.

 

NSE Indices today also revised the index methodology of the sectoral Nifty Private Bank index to make it compliant with new regulatory norms that require that no single stock shall weigh more than 23% and the weights of the top three stocks cumulatively shall not be more than 62%. The index provider will apply these criteria to the Nifty Private Bank, which earlier had a weightage cap of 33% on a single stock and a 62% limit on the cumulative weights of the top three stocks.

 

In a separate press release, NSE Indices said Tata Motors Ltd's 'A' ordinary shares with differential voting rights will be excluded from all Nifty indices from Aug 30 as the company has announced Sep 1 as the record date to implement its scheme of arrangement involving reduction of share capital by way of cancellation of the category of shares.  End

 

Reported by Rajesh Gajra

Edited by Rajeev Pai

 

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