UPL falls on Nifty 50 exit buzz, stock may enter Dow Jones sustainability index

Over the year, shares of UPL have tanked 22.29 percent.

Shares of UPL gave up the morning gains to trade in the red by the noon. The agricultural solutions player announced that it would be included in the Dow Jones Sustainability World and Emerging Markets Indices.

Additionally, Nuvama Institutional Equities strategists predict Shriram Finance may enter the Nifty 50 in March 2024, possibly replacing UPL. This change could bring $217-million inflow to Shriram and $114 million outflow from UPL.

The official list for the Nifty 50 rejig will be announced late in February 2024. Additionally, Nuvama suggests a medium to high chance for Canara Bank to replace Bandhan Bank in the March 2024 review.

Also Read | Shriram Finance could replace UPL, attracting an inflow of $217 mn: Nuvama analysis

As of 11.30am, shares of UPL were trading at Rs 596.75 on the NSE, lower by 0.16 percent.

The Dow Jones Sustainability Index (DJSI) is one of the major sustainability ratings for environment, social, and governance (ESG). UPL will be included in the indices based on its high scores in the S&P Global 2023 Corporate Sustainability Assessment for the agrochemicals sector.

The DJSI World Index includes the top 10 percent of major global companies by industry, reflecting their best practices in sustainable development. Similarly, the DJSI Emerging Markets Index recognises the top 10 percent of the largest 800 emerging market companies, each selected for their exceptional ESG practices.

Over the last year, shares of UPL have tanked 22.29 percent. In comparison, the Nifty 50 index has given investors returns of 15 percent or so during the same period.

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