The Index Maintenance Sub-Committee (Equity) of NSE Indices on Friday made changes to the 50-stock index with effect from September 30, 2024 (closer to September 27, 2024).
Nifty Next 50 will include Bharat Heavy Electricals (BHEL), Divini Laboratories, JSW Energy, LTIMindtree, Macrotech Developers, NHPC, Union Bank of India while excluding Berger Paints India, Bharat Electronics, Colgate Palmolive (India). ), Marico, SBI Cards and Payment Services, SRF and Trent.
The Nifty 50 index is reviewed twice a year, based on data for the six months ending January 31 and July 31. The index represents 50 stocks based on free-float market capitalization and liquidity, with 90 having an average expense ratio of 0.50% or less. Rs. % of observations for a basket size of 10 crore. The next index change will be effective from September 30.
The report mentions that for the September rebalancing, based on the average free float market cap that prevails between February 1 and July 31, the above changes are expected.
So far in August, Trent’s share price has gained 17.1%, while it has fallen 3.6% for Bharat Electronics. For LTIM and DIVI, the share price rose 1.6% and fell 0.8%, respectively, over the period.
After the index change, Trent and Bharat Electronics are expected to receive inflows of $523 million and $394 million, respectively. On the other hand, LTI Mindtree and Divis Laboratories are expected to witness an outflow of 205 $ million and 221 $ million respectively.
The report also mentions that the average free float market cap of Jio Financial and Zomato is higher than Trent and Bharat Electronics but they are unlikely to be included in the Nifty as they are not part of the F&O segment.
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