Indiabulls Housing Finance Ltd will be replaced by Nestle India Ltd in NSE's benchmark index Nifty 50 from 27 September. The replacement will also be made on the Nifty 50 Equal Weight Index.
As on Wednesday, at closing time, Nestle India's market capitalisation stood at Rs 1.21 trillion. The stock has been doing well among the consumer goods makers.
Indiabulls Housing Finance's share price, on the other hand, has fallen by 46 percent in 2019. It also saw a credit rating downgrade by Moody's Investors Service on account of pressure on the company in terms of cost and availability of funds.
The stocks that constitute the indices are reviewed every six months and changes are accordingly made. A four-week notice is given to the markets before making a change. The Nifty 50 index includes stocks from various sectors of the economy, with private banks holding the highest weightage (of 26 percent) at present.
In a recent announcement, NSE said that stocks which are permitted to trade in NSE platform but are not listed in NSE can also be considered for inclusion in the indices.
The previous shuffle occurred in February when Hindustan Petroleum was replaced by Britannia Industries.