YES Bank was pushed out of India’s top derivative index Nifty 50. The National Stock Exchange said it has replaced the bank with Shree Cement from March 27. Stocks with presence in the two benchmark indices, Nifty and Sensex, attract higher fund flows, as index funds cannot ignore stocks in these indices.

YES Bank fell out of favour in the stock markets as it has failed to close a fund-raising deal despite repeated attempts. For being in the Nifty index the stock is required to maintain a minimum threshold with regard to market-cap and volumes.

NSE further said that Vodafone Idea, Ashok Leyland, IB Housing Finance, and L&T Finance Holdings will be dropped from Nifty Next 50. They will be replaced by Adani Transmission, IDBI Bank, Info Edge (India), L&T Infotech and Torrent Pharmaceuticals.

Changes have been made in several indices including Nifty 500, Nifty 200, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250 and a host of sectoral indices including FMCG, IT, media, pharma, commodities and services sectors, the NSE said. Also, NSE Indices has revised the eligibility criteria for inclusion in Nifty’s 17 sectoral indices. Under the new criteria, companies should be a part of Nifty 500 at the time of review.

“In case, the number of eligible stocks representing a particular sector within Nifty 500 falls below 10, then the deficit number of stocks shall be selected from the universe of stocks ranked within the top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for the index,” NSE said.

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