NSE announced last week the change in constituents of four indices: Nifty 50, Nifty Next 50, Nifty Financial Services and Nifty Midcap Select Index. These changes will be effective from March 28. The changes are made based on the six-month average free flow market capitalisation.
Nifty 50: The companies to be excluded from the benchmark index are Bharat Petroleum Corporation and Britannia Industries. These will be replaced by Jio Financial Services and Zomato.
Nifty Next 50: Seven stocks being excluded are Adani Total Gas, Bharat Heavy Electricals, Indian Railway Catering and Tourism Corporation, Jio Financial Services, NHPC, Union Bank of India and Zomato.
Those set to be included are Bajaj Housing Finance, Bharat Petroleum Corporation, Britannia Industries, CG Power and Industrial Solutions, Hyundai Motor India, Indian Hotels and Swiggy.
Nifty Financial Services: The stock of Multi Commodity Exchange of India will be removed from this index and will be replaced by Jio Financial Services.
Nifty Midcap Select: Here too, seven stocks will be replaced. The scrips going out are AU Small Finance Bank, Container Corporation of India, Federal Bank, IDFC First Bank, Indian Hotels, MRF and PI Industries.
Replacing the aforesaid stocks are Bharat Heavy Electricals, BSE, Marico, Max Healthcare, Oracle Financial Services Software, PB Fintech and Yes Bank.
The stocks that are going to be included in the indices will get an inflow whereas the ones that are excluded will see an outflow. This is because the index following funds will make necessary adjustments in their holdings. Thus, there could be an impact in prices of the aforementioned stocks as they witness the churn.