Nifty Rejig: Shriram Finance To Replace UPL On Index; Adani Power Added To Nifty Next 50; Check List

The National Stock Exchange (NSE) has announced significant changes to its benchmark indices, with Shriram Finance Ltd set to replace UPL Ltd in the Nifty50 index effective March 28. This move follows UPL's exclusion from the Nifty50 index, reflecting its removal from the Nifty 100 index.

Shriram Finance's inclusion in the Nifty50 index is attributed to its highest 6-month average free-float market capitalization within the eligible universe. The announcement comes as part of the NSE's periodic review and reconstitution of its indices to ensure representation of dynamic market trends.

In addition to Shriram Finance's elevation, Adani Power, Indian Railway Finance Corporation, Jio Financial Services, Power Finance Corporation, and REC Ltd have secured positions in the Nifty Next 50 index. Meanwhile, Adani Wilmar, Muthoot Finance, PI Industries, Procter & Gamble Hygiene & Health Care, and Shriram Finance have been ousted from the index.

The Nifty 500 index has witnessed a substantial reshuffling, with 34 stocks being both added and removed. Honasa Consumer, Jio Financial, Jammu & Kashmir Bank, AstraZeneca Pharma, Chennai Petroleum Corporation, JSW Infrastructure, Jupiter Wagons, Nuvama Wealth, and Railtel Corporation are among the notable additions. Conversely, Brightcom Group, Delta Corp, Go Fashion, Infibeam Avenues, Nazara Technologies, Pfizer, Orient Electric, Rallis India, Rossari Biotech, and Shoppers Stop find themselves on the exclusion list.

The adjustments are not confined to the Nifty 500 alone, as other key indices such as Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, and Nifty Midcap Select have also undergone significant transformations.

Vodafone Idea, a prominent player in the telecom sector, has been ushered into the Nifty Midcap Select index, securing a position within the top 5 based on the 6-month average full market capitalization within the eligible universe. This move is indicative of the dynamic nature of the market, with telecom gaining prominence.

Furthermore, Lupin, PI Industries, and UPL have earned spots in the Midcap Select index, positioned within the top 10 based on the 6-month average free-float market capitalization in the reranked universe. However, Abbott India, Balkrishna Industries, Bandhan Bank, and Power Finance Corp are set to be removed from the Midcap Select index, reflecting the ebb and flow of market dynamics.

Investors and market participants are advised to stay attuned to these changes as they can impact investment strategies and portfolio compositions. The NSE's periodic reviews reflect the ever-evolving nature of the market, ensuring that indices accurately represent the current economic landscape.