ICICI Securities expects Info Edge to enter the Nifty50 index in the ensuing rejig in September. Indian Oil is likely to exit from the index, I-Sec said based on data July 19 data.
“However, Info Edge is marginally behind in terms of average free float market capitalisation criteria ($5 billion and 3.7 per cent lower than 1.5x that of IOCL – the smallest free float market cap stock within the current NIFTY50 index) while fulfilling other conditions such as inclusion in the F&O list and being part of the upcoming proforma NSE100 universe amongst others (full list of criteria is given below),” it said.
Info Edge will be the first pure play internet platform company to be included in the Nifty50 index as and when it qualifies. “To put things into perspective, the US Dow Jones Industrial Average still doesn’t have any of the internet platform companies such as Amazon or Google as part of its constituents given the limitations of it being a price weighted index,” said I-Sec.
In the upcoming proforma NSE100 universe list, which will be based on the average free float market cap since February till now, two other non-Nifty50 index stocks that rank ahead of Info-edge are: Avenue Supermarts and Adani Green Energy. However, given that both the stocks are not part of the F&O list currently, they are excluded from our likely list although Avenue Supermarts has the edge in terms of qualifying as a F&O stock, it further added.
All the three stocks are notably from the new-age economy sectors of internet businesses, organised discount grocery retail with e-commerce incubation, and a green energy company, respectively.
New large cap internet platform companies like Zomato with high free float market cap due to zero promoter holdings could be serious contenders for entry into the benchmark indices going ahead, it further said.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.