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Tata Consumer Products will enter Nifty 50 index from Wednesday. It will replace PSU major GAIL India. Similarly, AU Small Finance Bank will replace Bank of Baroda in the Bank Nifty, while Muthoot Finance will replace Bajaj Holdings & Investment.

The Index Maintenance Sub-Committee had earlier announced changes in several other broad indices such as Nifty Next 50, Nifty 500, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty Midcap 50, Nifty Midcap 100, Nifty Smallcap 50, Nifty Smallcap 100, Nifty 200, Nifty LargeMidcap 250 and Nifty MidSmallcap 400, which will be effective from the same date.

Besides, sectoral indices such as Nifty Bank, Nifty Consumer Durables, Nifty Financial Services, Nifty Healthcare, Nifty IT, Nifty Media, Nifty Metal, Nifty Private Bank, Nifty PSU Bank, Nifty Realty, Nifty Oil & Gas, Nifty Infrastructure and Nifty Services Sector will also see changes.

Cheaper valuation

The valuation of Nifty 50 is set to get cheaper from tomorrow as the index management had made a key change that will henceforth use consolidated earnings of Nifty 50 firms as against the current practice of considering standalone numbers.

Consolidated numbers include aggregated reporting of a firm's entire business, including subsidiaries. Only in cases wherein consolidated financials aren’t available, standalone numbers will be considered.