NSE Rejig: Bharti Airtel to Gain Weight in Nifty 50; Key Index Shuffle | How Will It Impact Investors?

NSE Rejig: The semi-annual rejig for Nifty indices, set to take place on Friday, March 26, wll include a major rebalancing in indices like Nifty Next 50, Nifty Midcap 150, and Nifty Smallcap 250 indices. The benchmark Nifty 50 constituents, Bharti Airtel, Tata Motors, Union Bank, HDFC AMC, Muthoot Finance, Tata Capital, YES Bank and Bharti Electronics Ltd (BEL) may see a surge in weightage.

While, there will be no inclusions or exclusions in Nifty 50, investors can expect change in weightage of a couple of stocks. Here are all the details to know about it.

NSE Rejig On March 27

The National Stock Exchange (NSE) will carry out semi-annual index reshuffle on Friday, March 27. However, the revised compositions and weight changes across key NSE indices will apply from March 30. Since March 31 is a trading holiday for Mahavir Jayanti.
The NSE review includes Nifty 50, Bank Nifty, Nifty Next 50, Nifty Midcap 150, Nifty India Defence and Nifty Capital Markets.

Nifty 50 Weightage Changes

Nifty 50 pack is likely to remain unchanged, however there can be some changes in weightage. Bharti Airtel, Bajaj Finance and Bajaj Finserv will gain higher representation in the benchmark. Meanwhile, HDFC Bank, Reliance Industries, ICICI Bank, Larsen & Toubro, State Bank of India and Infosys are among fifteen heavyweights that will see weights trimmed.

Among Nifty 50 members, Bharti Airtel is projected to attract the largest new passive buying, at about $246 million. Nuvama Alternative & Quantitative Research expects Bajaj Finance and Bajaj Finserv to draw around $2 million each. On the negative side, HDFC Bank may see passive selling of roughly $29 million, with Reliance Industries and ICICI Bank facing outflows of $25 million and $21 million respectively.

NSE Rejig: How It Will Impact Investors?

"The lack of inclusions or exclusions in the Nifty 50 may indicate macro-level stability. Still, actual market impact occurs at the weightage level, which may result in substantial passive investments pouring into stocks such as Bharti Airtel and Tata Motors. However, this is likely to result in short-term stock price movements based on index funds and ETFs and not fundamental analysis," explained Pranav Koomar, Founder and CEO of PlusCash.

BIG Reshuffle In Nifty Next 50, Nifty Midcap 150, etc

While there is unlikely to be any addition or exclusions in Nifty 50, Nifty Next 50, Nifty Midcap 150, and thematic indices may see a reshuffle, as per Nuvama report.

The index committee scheduled all rebalancing trades for 27 March, with new weights applying from the close of 30 March. This timing lets passive funds and exchange traded funds adjust portfolios before the new quarter.