Business Desk, Feb 29: The National Stock Exchange (NSE) has unveiled significant changes in its indices, with Shriram Finance set to replace UPL Ltd in the prestigious Nifty 50 index from March 28. This transition comes as part of the NSE’s routine review of broad market indices.
According to the NSE’s announcement on Wednesday, Shriram Finance secured its position in the Nifty 50 index due to its highest 6-month average free-float market capitalization within the eligible universe. Consequently, it will fill the spot vacated by UPL Ltd in the benchmark index.
In a statement issued by NSE Indices, it was highlighted that Shriram Finance’s inclusion in the Nifty 50 index is a strategic move, aligning with its exceptional market performance and capitalization metrics.
Moreover, UPL Ltd’s removal from the blue-chip index was preceded by its exclusion from the Nifty 100, which serves as the parent index for the Nifty 50. This development underscores a shift in the composition of major indices, reflecting the evolving dynamics of the stock market.
Alongside the substitution in the Nifty 50 index, several other alterations have been announced across various indices. Notable changes include the inclusion of Adani Power, Indian Railway Finance Corporation, Jio Financial Services, Power Finance Corporation, and REC Ltd in the Nifty Next 50 index.
Conversely, Adani Wilmar, Muthoot Finance, PI Industries, Procter & Gamble Hygiene & Health Care, and Shriram Finance have been removed from the Nifty Next 50 index, marking a reshuffling of constituent companies.
Additionally, revisions have been made in several sectoral indices, encompassing Pharma, realty, media, FMCG, auto, financial services, and consumer durables. These adjustments reflect the NSE’s commitment to maintaining the relevance and accuracy of its indices in line with market dynamics.
The Index Maintenance Sub-Committee (Equity) of NSE Indices Ltd has meticulously orchestrated these changes as part of its periodic review. All modifications are slated to come into effect from March 28, 2024, impacting the composition and dynamics of various indices within the NSE framework.
Investors and market enthusiasts are urged to stay abreast of these developments, as they could influence investment strategies and portfolio management decisions in the foreseeable future.
