On August 20, 2020, NSE took a decision to replace Bharti Infratel and Zee Entertainment Enterprises in the Nifty 50 pack with SBI Life and Divi's Labs. The change shall come into effect from September 25 or at the end of trading session on September 24. This is after the exchange carries out semi-annual review of indices.
So, after HDFC Life made its way into the main indices from July 31, SBI Life shall be the second company from the insurance space to mark its presence in the benchmark index.
Also, as part of the semi-annual review, other indices will also see reshuffling as per the Index Maintenance Sub-Committee (IMSC's) decision.
|Index||Stock to be included||Stocks to exit|
|Nifty Next 50||Adani Green Energy||Divi's Laboratories|
|Bharti Infratel||Page Industries|
|Larsen & Toubro Infotech||SBI Life Insurance Company|
|Tata Consumer Products||Shriram Transport Finance|
There have been also made changes to the components of Nifty 500, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty Midcap 50, Nifty Midcap 100, Nifty Smallcap 50, Nifty Smallcap 100, Nifty LargeMidcap 250, Nifty MidSmallcap 400, Nifty 200, Nifty Commodities, Nifty Energy, Nifty India Consumption, Nifty MNC, Nifty Services Sector, Nifty100 Liquid 15, Nifty Midcap Liquid 15, Nifty Growth Sectors 15, Nifty Mahindra Group, Nifty Tata Group, Nifty Tata Group 25% Cap and Nifty SME Emerge indices.
But to the various sectoral Nifty indices such as Nifty Auto, Nifty Bank, Nifty Consumer Durables, Nifty Financial Services, Nifty Financial Services 25/50, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Oil & Gas, Nifty Pharma, Nifty Private Bank, Nifty PSU Bank, Nifty Realty, Nifty Infrastructure, Nifty PSE and Nifty Aditya Birla Group indices there has been proposed no change.
Also, for inclusion of stock into Nifty 500, Nifty 100 and Nifty Midcap 150 indices there has been made a change in criteria. For being part of the Nifty 500 index, stocks should either top among the 800 companies on the basis of both the average daily turnover as well as average daily full market capitalisation basis the data of previous six months or the investible weight factor (IWF) of a stock should be at least 0.1 (10 percent free float), or its 6-month average free float m-cap should be at least 25 percent of the 6-months' average full m-cap of the existing smallest index constituent (prior to index review) as of the cut-off date.
And for being a constituent of Nifty 100 index, the NSE iterated that the counter should either be a part of the Nifty 500 index and its IWF should be at least 0.1 or the stock's 6-month average free float m-cap should be at least 25 percent of the 6-month average full m-cap of the existing smallest index constituent as of the cut-off date.