Nifty200 Momentum 30 Index to see around 19 changes in next week reshuffle  

The Nifty200 Momentum 30 Index is set for a major overhaul next week, with changes taking effect at the close on 30 December. As many as 19 components are expected to be replaced, making this one of the most significant reshuffles in recent years.

Among the likely inclusions are Maruti Suzuki, Eicher Motors, AU Small Finance Bank, Hero MotoCorp, Asian Paints, Fortis Healthcare, State Bank of India, Glenmark Pharma and Hindalco, among others.

On the other hand, Shree Cement, Mazagon Dock Shipbuilders, Dixon Technologies, ICICI Bank, Divi’s Laboratories, Kotak Mahindra Bank, HDFC Bank, Bharat Electronics and Bajaj Finserv are among the names expected to be dropped.

Analysts estimate that the rebalancing could trigger trades worth Rs 16,300 crore. Heavyweights such as Maruti Suzuki, Eicher Motors, SBI and Hindalco may each see passive inflows of nearly Rs 600 crore,

Conversely, Bajaj Finserv, Bharat Electronics, HDFC Bank, Kotak Mahindra Bank, HDFC Life Insurance and ICICI Bank are projected to face passive selling of more than Rs 600 crore each, according to an analysis by Brian Freitas of Periscope Analytics, published on Smartkarma. Most other stocks are projected to witness inflows or outflows ranging between Rs 100 crore and Rs 550 crore.

“Based on the expected changes to the index and weight capping, one-way turnover is estimated at 64.2 percent, resulting in a round-trip trade of Rs 16,300 crore,” Freitas said.

The Nifty200 Momentum 30 index tracks the performance of the top 30 companies within the Nifty200 universe, based on their Normalised Momentum Score — a metric derived from six-month and 12-month price returns, adjusted for volatility.

Financial stocks dominate the list of expected additions with eight names, followed by consumer discretionary, materials and industrials with three each. Consumer staples and information technology see no additions, and both face net exclusions.

Stock weights in the index are determined through a factor-tilt methodology, combining free-float market capitalisation with the respective stock’s momentum score.

To qualify for inclusion, companies must be part of the Nifty200 at the time of review, have a minimum one-year listing history, and be included in the F&O segment as of the effective date. The index is rebalanced semi-annually in June and December, with weight caps applied during each review.