Nifty rejig: Another Adani group firm knocking on the door; shares worth Rs 2.4K crore may change hands

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26 Aug, 2025 12:21

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In the upcoming semiannual rejig of the Nifty50 index, Adani Enterprises is likely to replace Shree Cement, which could result in buying and selling of Rs 2,400 crore worth of shares, an ICICI Securities note said on August 10.

Vinod Karki, a research analyst at ICICI Securities, said the likelihood of this change was “very high”. He expects selling worth Rs 630 crore in Shree Cement and buying worth Rs 1,760 crore in Adani Enterprises by ETF fund managers after the reshuffle.

The changed Nifty50 will be announced later in August and the changes shall come into effect from September 30. These changes will take into account the average free float (FF) market capitalisation for the period February to July 2022.

In the last such change, which came into effect from March 2022, Apollo Hospital entered the elite pack replacing Indian Oil.

Among the key requirements for inclusion in Nifty 50 are that the company should be part of Nifty 100, should be traded in the futures and options (F&O) market, and average free-float market capitalisation should be at least 1.5 times the smallest component.

Following the reshuffle, FY22 P/E of the index will increase by 0.9 percent to 24.3 times and FY22 returns on equity will dip marginally by 3 basis points to 14.69 percent. One basis point is one-hundredth of a percentage point.

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The rejig is happening in the shadow of the merger of the index’s two biggest constituents–HDFC and HDFC Bank. The merger, for which most of the regulatory approvals have come in, will leave a void in the index.

“The HDFC merger will likely result in an unprecedented about 14 percent of the Nifty50 weight getting replaced by two new incoming stocks with a combined weight of 1 percent and the remaining 13 percent weight getting distributed amongst the existing 48 stocks in the index at that time,” said Karki.

On the basis of current Nifty ETF asset under management (AUM) of Rs 1.7 lakh crore, the HDFC merger-related index changes can result in buying and selling of stocks worth above Rs 48,000 crore based on July 2022 end-prices, the note says.

Sensex ETFs also have another Rs 88,000 crore AUM and could see a similar action. However, any action regarding HDFC twins is likely only after the merger gets shareholders' nod, Karki said.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.