JM Financial, a domestic brokerage firm, assumed Jio Financial Services and Zomato might join the nifty if added to futures and options, and Trend Ltd is also anticipated to be included in the nifty, according to the brokerage.
The National Stock Exchange of India (NSE) has numerous significant indices, including the Nifty 50, which measures the performance of the top 50 firms and accounts for approximately 65% of the free-float market capitalization of listed equities. Other indexes, such as the Nifty Next 50 and Nifty 500, cover bigger market sectors.
The rebalancing of NSE Indices will be announced in the month of August and take effect in September. The process considers the average free float market cap from February 1 to July 31 for September’s adjustments.
However, if Jio Financial Services and Zomato are not added to F&O, Trent and Bharat Electronics will join the Nifty, while LTI Mindtree and Divis Laboratories are expected to be excluded.
Interestingly, Jio Financial Services and Zomato have larger average free float market capitalizations than Trent and Bharat Electronics. However, they are not likely to be included in the nifty as they are not a part of the F&O segment.
The analysts estimate that around 25 stocks may be excluded from the futures and options segment, while approximately 78 could be added, as per the proposed changes in eligibility criteria.
Recently, the SEBI released a consultation document outlining the need to reassess the qualifying requirements for stock derivatives in light of the current market expansion. The report concluded that derivative markets improve price discovery and market liquidity.
Nuvama Alternative & Quantitative Research has identified 78 possible equities for inclusion, including companies like Zomato, YES Bank, Jio Financial, NHPC, Adani Green, and others.
Written by:- Abhishek Singh
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