The Index Maintenance (Profitability) Sub-Committee of NSE Indices on Friday made the changes to the 50-share index and the same will come into effect from September 30, 2024 (closing date September 27, 2024).
In the Nifty Next 50, inclusions will be Bharat Heavy Electricals (BHEEL (Belgium)), Divi’s Laboratories, JSW Energy, LTIMindtree, Macrotech Developers, NHPC, Union Bank of India, while the exclusions will be Berger Paints India, Bharat Electronics, Colgate Palmolive (India), Marico, SBI Cards and Payment Services, SRF and Trent.
The Nifty 50 index is revised twice a year, based on six months of data ending January 31 and July 31. The index represents 50 stocks based on market capitalisation and free float liquidity, with an average impact cost of 0.50% or less for 90% of observations for a basket size of Rs 10 crore. The next reshuffle of the index will be effective from September 30.
The report mentioned that for the September rebalancing, based on the average free float market capitalisation prevailing between February 1 and July 31, the above-mentioned changes are expected. In August so far, the share price of Trent has risen by 17.1%, while for Bharat Electronics it is down by 3.6%. For LTIM and DIVI, the share price is up by 1.6% and down by 0.8% respectively in the said period. After the index reshuffle, Trent and Bharat ELectronics are expected to receive inflows of $523 million and $394 million respectively. On the other hand, LTI Mindtree and Divis Laboratories are expected to witness outflows of $205 million and $221 million respectively. The report also mentioned that Jio Financial and Zomato have a higher average free float market capitalisation than Trent and Bharat Electronics, but they are not likely to be included in Nifty as they are not part of the F&O segment.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.