On Wednesday, shares of Tata Consumer Products rose 4% to hit a new record high of Rs 654 on NSE after the exchange said the Tata group company will be included in the Nifty 50 index with effect from 31 March. It will be replacing state-owned Gail India on NSE's benchmark index.
Shares of Gail India declined 2.5% to touch an intraday low of Rs 142.90.
Tata Consumer, formerly known as Tata Global Beverages, will join FMCG peers such as Hindustan Unilever, Nestle India and Britannia in Nifty 50. NSE has also announced changes to its several other indices such as Nifty Next 50, Nifty 100 and Nifty 500. Adani Enterprises, Apollo Hospitals and Jubilant Foodworks are among the seven stocks added to the Nifty Next 50 index.
Motilal Oswal Financial Services has a 'buy' rating on Tata Consumers with a target price of Rs 661 per share. The brokerage believes that the company has two strong legs in the India business, namely Tata Tea and Tata Salt, by which it is targeting lower double-digit growth, driven by cross-selling between Tata Chemicals and TCP's distribution channels and expansion into new geographies.