- The NSE on February 24th revised and notified the changes in the eligibility criteria of Nifty equity indices and the replacement of stocks in various indices.
- The NSE did not make changes in NIFTY FMCG, NIFTY IT, NIFTY Consumer Durables, NIFTY Pharma, NIFTY Media, NIFTY Private Bank and NIFTY Realty indices.
- Indian Oil Corporation Ltd will be replaced by Apollo Hospitals Enterprise Ltd from the National Stock Exchange’s benchmark index Nifty 50 from March 31.
As a part of its periodic review, the National Stocks Exchange on February 24th revised and notified the changes in the eligibility criteria of Nifty equity indices and the replacement of stocks in various indices including Nifty Next 50 Nifty100, Nifty500.
The Index Maintenance Sub-Committee Equity (IMSC) of NSE Indices Limited has decided to make it a part of its periodic review, as per a press release.
Indian Oil Corporation Ltd will be replaced by Apollo Hospitals Enterprise Ltd from the National Stock Exchange’s benchmark index Nifty 50 from March 31. This replacement will also be applicable to Nifty50 Equal Weight Index as well. Apollo Hospitals’ free-float market capitalization is 1.5x that of IOC Ltd.
As per the press release by the NSE, “The change in eligibility criteria would be applicable with an immediate effect to all NIFTY equity indices which currently mandates requirement of a minimum of 3 months of listing for inclusion in the index.”
Further, “The replacements arising out of periodic reconstitution of thematic indices will be announced in due course,” the release added.
In case of new listing and companies traded subsequent to the scheme of arrangement for corporate events, constituents were required to have a minimum listing history of three months. This has now been revised to one month. This change in eligibility criteria will be applicable to all Nifty equity indices with immediate effect.
Apollo Hospitals Enterprise, Hindustan Petroleum Corporation Ltd, Aurobindo Pharma, Jindal Steel & Power Ltd Indraprastha Gas Ltd, and Yes Bank will be excluded from Nifty Next 50. These companies will be replaced by One 97 Communication (Paytm), FSN E-Commerce Ventures (Nykaa), Zomato Ltd, Indian Oil Corporation Ltd, MindTree Ltd and SRF Ltd. This replacement will become effective from March 31 (close of March 30).
The NSE did not make changes in NIFTY FMCG, NIFTY IT, NIFTY Consumer Durables, NIFTY Pharma, NIFTY Media, NIFTY Private Bank and NIFTY Realty indices.
