Moneycontrol PRO
Outskill Genai
HomeNewsBusinessMarketsNifty rejig: Vedanta, Zee, Bharti Infratel and GAIL may be excluded in next review

Nifty rejig: Vedanta, Zee, Bharti Infratel and GAIL may be excluded in next review

Currently on the basis of float market capitalisation and other conditions for inclusion, the brokerage expects inclusion of HDFC Life Insurance Company, SBI Life Insurance Company, Divis Labs and Dabur India in the Nifty50 Index.

June 29, 2020 / 13:53 IST
     
     
    26 Aug, 2025 12:21
    Volume
    Todays L/H
    More

    Vedanta, Zee Entertainment, Bharti Infratel and GAIL are expected to be removed from the Nifty50 index in the next semi-annual review by the National Stock Exchange (NSE).

    The index is reviewed every six months (on a half-yearly basis) and a four weeks' notice is given before making changes to the index set.

    Edelweiss Securities feels semi-annual review for rebalancing the Nifty index this time throws up a pretty long list.

    Currently, on the basis of float market-capitalisation and other conditions for inclusion, the brokerage expects inclusion of HDFC Life Insurance Company, SBI Life Insurance Company, Divis Labs and Dabur India in the Nifty50 Index.

    According to the Nifty Index inclusion criteria, one key criterion for the stock to get included in Nifty is it should be a part of the F&O segment.

    As all these above mentioned four stocks are already in the NSE F&O segment, the key criteria is cleared.

    "On the exclusion part, we expect Vedanta, Zee Entertainment, Bharti Infratel and GAIL to get excluded from the index," said the brokerage.

    Edelweiss expects index changes to be announced by the fourth week of August, and the same would take effect on September 25 (adjustment on September 24).

    Image12862020

    The brokerage said it would review the inclusion/exclusion after the close of July 31.

    Here is eligibility criteria for inclusion of stocks in the Nifty50:

    Liquidity

    For inclusion in the index, the security should have traded at an average impact cost of 0.50 percent or less during the past six months for 90 percent of the observations for a portfolio of Rs 10 crore.

    Index criteria

    Constituents of NIFTY100 Index shall form the universe for NIFTY50.

    Float-adjusted market cap

    Companies will be included if free-float market capitalisation is 1.50x the free-float market capitalisation of the smallest constituent in the respective index.

    F&O criteria for stocks in Nifty50

    The stock must be available for trading in NSE’s Futures & Options segment.

    Domicile

    The company must be domiciled in India and traded (listed & traded and not listed but permitted to trade) on the NSE.

    Trading frequency

    The company's trading frequency should be 100 percent for the past six months.

    Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Moneycontrol News
    first published: Jun 29, 2020 01:53 pm

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347