NSE removes SAIL, Sterlite from Nifty

The lacklustre performance of Indian stock markets notwithstanding, global equity indices compiler MSCI increased India’s weight, albeit marginally, on its Emerging Market index to 6.40 per cent from 6.33 as per its August index review. The MSCI indices help investors worldwide to track trends in the stock markets in India and abroad.

However, MSCI also reduced weights of certain heavyweights in its India Index including Reliance Industries, Infosys, Hindustan Unilever and TCS which were reduced by 10 basis points each. On the other hand, HDFC was hiked on the MSCI India Index to 7.46 per cent from 6.21 per cent.

Furthermore, stocks including Bombay Rayon Fashions, MindTree, Nava Bharat Ventures and Time Technoplast were excluded from the MSCI India Index. The proposed changes would be effective from August 31.

On the same day, the National Stock Exchange announced the exclusion of State-owned SAIL and Vedanta group firm Sterlite from the benchmark index Nifty. The exchange also announced the inclusion of Birla group company UltraTech Cement and Lupin in the Nifty. These changes would be effective from September 28.

Changes have also been made in various other indices of NSE such as CNX Nifty Junior Index, CNX 100 Index, CNX 200 Index S&P CNX 500 Index, CNX Midcap Index, CNX Smallcap Index, Nifty Midcap 50 Index, CNX Commodities Index and CNX Consumption Index. Sectoral indices for infrastructure, IT, media, MNCs and pharma will also see some changes.

The stocks being excluded from Nifty Junior index are Andhra Bank, Bharat Electronics (BEL), Lupin and UltraTech. The stocks which are being included in the same index are Apollo Hospitals, Bajaj Holdings & Investment Ltd, Godrej Consumer Products and SAIL.

In the CNX 100 index, Andhra Bank, BEL and Sterlite would be replaced by Apollo Hospitals, Bajaj Holdings and Godrej Consumer Products.

(This article was published on August 16, 2012)
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