The NSE recently announced changes to four of its indices: Nifty 50, Nifty Next 50, Nifty Financial Services, and Nifty Midcap Select Index. These changes will come into effect on March 28 and are based on the six-month average free float market capitalization.
In the Nifty 50 index, Bharat Petroleum Corporation and Britannia Industries will be removed and replaced by Jio Financial Services and Zomato.
For the Nifty Next 50 index, seven stocks will be excluded: Adani Total Gas, Bharat Heavy Electricals, Indian Railway Catering and Tourism Corporation, Jio Financial Services, NHPC, Union Bank of India, and Zomato. The new additions will be Bajaj Housing Finance, Bharat Petroleum Corporation, Britannia Industries, CG Power and Industrial Solutions, Hyundai Motor India, Indian Hotels, and Swiggy.
In the Nifty Financial Services index, Multi Commodity Exchange of India will be replaced by Jio Financial Services.
Lastly, in the Nifty Midcap Select index, seven stocks will be replaced: AU Small Finance Bank, Container Corporation of India, Federal Bank, IDFC First Bank, Indian Hotels, MRF, and PI Industries. They will be substituted by Bharat Heavy Electricals, BSE, Marico, Max Healthcare, Oracle Financial Services Software, PB Fintech, and Yes Bank.
As a result of these changes, the stocks being included in the indices will experience inflow, while those being excluded will see outflow. This is because index-tracking funds will adjust their holdings accordingly, leading to a potential impact on the prices of the affected stocks.
