Zomato, Paytm and Nykaa stocks will be included in the Nifty Next 50 index. Details here
Newly listed stocks Zomato, One97 Communications (Paytm), FSN E-Commerce Ventures (Nykaa) are among those to be included in the Nifty Next 50 index from March 31, 2022. The change in criteria announced by the exchange has paved the way for those stocks, which were listed last year, to enter the index.
The Index Maintenance Sub-Committee – Equities (IMSC) of NSE Indices Limited has decided to make changes to the Nifty Equity Indices eligibility criteria and replace stocks of various indices as part of its periodic review , as shown below. These changes will come into effect from March 31, 2022, NSE announced in a circular on Thursday.
The committee has decided to make changes to the eligibility criteria for NIFTY equity indices. In accordance with the new methodology change, constituents must have a registration history of at least 1 calendar month at the deadline, compared to 3 months in the previous criteria.
“Voters must now have a registration history of at least 1 calendar month at the deadline compared to the previous requirement of 3 months. This paved the way for actions like Nykaa, Paytm, Policy Bazaar and Latent View which were listed after October 2021. From a passive tracking perspective, new criteria helped Nykaa and Paytm to be included in Nifty Next 50,” said Abhilash Pagaria, Head, Alternatives Research, Edelweiss Securities.
Six stocks – Nykaa, Indian Oil Corporation (IOC), MindTree Ltd, Paytm, SRF Ltd and Zomato Ltd will replace Apollo Hospitals Enterprise, Aurobindo Pharma HPCL, IGL, Jindal Steel & Power and Yes Bank in the Nifty Next 50 index.
Additionally, Apollo Hospitals will replace IOC in the Nifty 50 Index, while within Nifty Bank, Bank of Baroda will be included as RBL Bank will be excluded from the banking index.
“Clever index rebalancing is in line with Edelweiss forecast. In Nifty 50, Apollo Hospital will see an inflow of $143 billion while Indian Oil will be taken out and it will see an outflow of $91 million. from Nifty Bank, Bank of Baroda will earn $53 million while RBL will see an outflow of $23 million,” the brokerage said.
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