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Public sector GAIL India will be out of Nifty50 index from March 1, in the latest rejig announced by Nifty’s Index management Sub-committee (IMSC).
Tata Consumer Products will replace Gail India in the Index. This will be the fifth Tata group company to enter the index.TCS, Tata Motors, Tata Steel and Titan Company are the other companies that are currently part of the Nifty50 index.
ICICI Securities, in a recent report, estimated that the changes could result in ₹760 crore worth of buying of Tata Consumer shares and selling of Gail India shares worth ₹510 crore.
BoB out of Bank Nifty
Bank of Baroda, another PSU stock, will also be out of Bank Nifty and AU Small Finance Bank will enter the index in its place.
The reshuffle that will come into effect on March 1 will see changes in the Nifty Next 50, Nifty 100, Nifty 200, Nifty 500, Nifty Midcap150, Nifty MidCap 50, Nifty MidCap 100, Nify SmallCap 250, Nifty SmallCap 50, Nifty SmallCap 100, Nifty LargeMidCap 250 and Nifty MidSmallCap 400 and other sectoral indices.
The NSE announced that Nifty Next 50 will see Bank of Baroda, Container Corporation, General Insurance Corporation, Hindustan Zinc, Oracle FInancial, PFC and Tata Consumer exit from the index.
These will be replaced by Adani Enterprises, Apollo Hospitals, GAIL (India), Jubilant Foodworks, MRF, Vedanta and YES Bank.
For the Nifty50, the cumulative weight of non-F&O stocks will be capped at 15 per cent, and individually at 4.5 per cent on quarterly rebalance dates. Currently, there are no such capping on the index. As many as 24 companies will be getting booted out from Nifty500 including Bombay Dyeing, CPCL, GMDC, ICRA, Heritage Foods, J&K Bank, Karnataka Bank, PTC India and South Indian Bank.
Among stocks that will enter the index are Angel Broking, CAMS, KPR Mills, Mazagaon Dock, Prince Pipes, Rossari Biotech, Spandana Sphoorty, Sundaram Clayton and UTI Asset Management.
ETFs, Index funds must rejig
The move will force index funds funds and exchange trade funds to realign their portfolios, mirroring the changes in the schemes.
There will be no changes in NIFTY Auto, NIFTY Energy, NIFTY FMCG, NIFTY Pharma, NIFTY Aditya Birla Group, NIFTY Mahindra Group, NIFTY Tata Group and NIFTY Tata Group 25 per cent cap indices, the exchange said in a release.
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