The Nifty -50 index of the National Stock Exchange (NSE) will likely to witness the addition of 4-6 new stocks replacing old ones. Sources said the inclusion to the Nifty index could be the largest in recent times and that an announcement is likely by mid-August.

Adani Enterprises may be a key addition to the index as per a study published by equity research company Edelweiss. The stock is likely to dislodge Shree Cements from the index, the brokerage said. Based on the set creteria, it would be the second Adani stock to be included in the Nifty index, after Adani Ports and Special Economic Zone. Hero MotoCorp is another stock that could be on its way out from the Nifty index, the research report said.

Rebalancing date

The rebalancing date for the Nifty index is September 30, when the new constituents will be effective. Market experts say the new additions would ensure that the Nifty index maintains its outperformance compared to other global indices.

A key criterion for the inclusion of stocks into the Nifty index is that they should be part of the NSE derivatives segment. Based on this, Avenue Supermarts (Dmart), Adani Greens and Adani Transmission, which carry higher market-cap than other Nifty companies, will miss the bus since they are not part of the derivatives yet.

Nifty Next 50 index

Edelweiss report says that the Nifty Next 50 index could see likely inclusions of Life Insurance Corporation, Tata Power, Adani Wilmer, IRCTC, and Mphasis. They could replace Lupin Ltd , Jubilant Foodworks, Zydus Lifesciences, Punjab National Bank, Steel Authority of India and Adani Enterprises.

Related Topics