The National Stock Exchange (NSE) on August 20 has decided to include SBI Life Insurance Company and Divi's Laboratories in the Nifty50. It will remove Bharti Infratel and Zee Entertainment Enterprises (ZEE) from the benchmark index.
These changes will be effective September 25 or at the close of trade on September 24, the exchange, which makes semi-annual review of its indices, said.
SBI Life would be the second insurance company to enter into Nifty50 after HDFC Life Insurance Company was included in the index from July 31.
The Index Maintenance Sub-Committee (IMSC) has decided to make the replacement of stocks in various indices as part of its periodic review, it added.
In the Nifty Next 50, Adani Green Energy, Alkem Laboratories, Bharti Infratel, Larsen & Toubro Infotech and Tata Consumer Products will replace Divi's Laboratories, NHPC, Page Industries, SBI Life Insurance Company and Shriram Transport Finance.
The exchange also made changes to the constituents of Nifty 500, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty Midcap 50, Nifty Midcap 100, Nifty Smallcap 50, Nifty Smallcap 100, Nifty LargeMidcap 250, Nifty MidSmallcap 400, Nifty 200, Nifty Commodities, Nifty Energy, Nifty India Consumption, Nifty MNC, Nifty Services Sector, Nifty100 Liquid 15, Nifty Midcap Liquid 15, Nifty Growth Sectors 15, Nifty Mahindra Group, Nifty Tata Group, Nifty Tata Group 25% Cap and Nifty SME Emerge indices.
No changes are being made to Nifty Auto, Nifty Bank, Nifty Consumer Durables, Nifty Financial Services, Nifty Financial Services 25/50, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Oil & Gas, Nifty Pharma, Nifty Private Bank, Nifty PSU Bank, Nifty Realty, Nifty Infrastructure, Nifty PSE and Nifty Aditya Birla Group indices.
Meanwhile, the exchange has also decided to revise the criteria to select stocks for Nifty 500, Nifty 100 and Nifty Midcap 150 indices.
To be included in the Nifty 500 index, companies should either rank within the top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months’ data, or the investible weight factor (IWF) of a stock should be at least 0.1 (10 percent free float), or its 6-month average free float m-cap should be at least 25 percent of the 6-months’ average full m-cap of the existing smallest index constituent (prior to index review) as of the cut-off date.
To be included in the Nifty 100 index, the exchange said either the stock should be a constituent of Nifty 500 index and its IWF should be at least 0.1 or the stock's 6-month average free float m-cap should be at least 25 percent of the 6-month average full m-cap of the of the existing smallest index constituent as of the cut-off date.
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