Nestle, first permitted stock, enters Nifty 50; IB Housing exits

Our Bureau Chennai | Updated on August 28, 2019

Nestle will replace Indiabulls Housing Finance in Nifty 50 Index, the NSE said on Wednesday. The replacement will take place from September 27, the Index Maintenance Sub-Committee of NSE Indices said.

Recently, the NSE made a significant shift to take permitted category also in the process of selecting stocks to be a part of Nifty indices. Till now, the NSE considers only listed stocks on the bourse for inclusion in the indices.

The replacement will also be applicable to Nifty 50 equal weight index, NSE further said.

With Hindustan Unilever, ITC, Nestle, Britannia, Asian Paints and Titan Industries, perhaps consumers will have the highest number of stocks ever in Nifty with a total weight of nearly 13 per cent. Currently, financial services top the weightage with over 40 per cent, followed by IT (14.8 per cent) and Energy (13.97 per cent).

However, Indiabulls Housing Finance along with Berger Paints, Power Finance Corporation and Punjab National Bank would enter Nifty Next 50 index. They will replace ABB India, Bharat Heavy Electricals, MRF and Steel Authority of India. (ABB is being replaced on account of the proposed scheme of arrangement for demerger).

Nifty 500 will see 21 stocks being replaced. Among the exclusions are: Deepak Fertilisers, Gateway Distriparks, Inox Wind, JP Associates, Reliance Communications, Reliance Home Finance, Rupa & Co, Shipping Corporation, SREI Infrastructure Finance, Tata Coffee and TN Newsprint. (ABB, Glaxo Consumer and Gruh Finance will also be out of Nifty 500 due to impending corporate actions such as merger and demerger).

Abbott in Nifty 500

Among the stocks that will enter Nifty 500 include Abbott, Adani Gas, Arvind Fashions, Bayer Crop, Den Networks, KPIT Tech, Metropolis Healthcare, MCX, Nestle, Orient Refractories and Techno Electric & Engineering. (Abbott is also trading under permitted category on the NSE).

Similarly, Berger Paints, Nestle India, PFC and PNB will replace ABB India, BHEL, MRF and SAIL in Nifty 100 index.

Nifty Midcap 150 replaces 15 stocks from the index. While Berger Paints, DHFL, Dilip Buildcon, Dish TV, Finolex Cables, Glaxo Consumer, Gruh Finance, JM Financial, KIOCL, PFC, PNB, Reliance Capital, Reliance Infrastructure, Reliance Power and SPARC will be removed, Aavas Financiers, Abbott India, Adani Gas, Allahabad Bank, Bayer Crop, BHEL, CESC, Corporation Bank, Fortis Healthcare, IOB, MRF, OBC, SAIL, UCO Bank and Vinati Organics would be added.

Nifty Smallcap 250 replaces 26 stocks. While Nifty Midcap 50 would see six changes in its index constitution; Nifty Midcap 100 sees rejig of 12 while Nifty Smallcap 50 shifts 10 stocks and Nifty Smallcap 100 to replace 15.

In all, 28 indices including NSE SME Emerge, Nifty Growth Sectors 15, Nifty MNC and Nifty100 Liquid 15 will see the changes. However, no changes are being made to Nifty Auto, Nifty Bank, Nifty PSU Bank, Nifty Pharma, Nifty Realty, Nifty PSE, Nifty Aditya Birla group, Nifty Tata Group, Nifty Mahindra Group and Nifty Tata Group 25 per cent Cap indices.

Published on August 28, 2019

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