NSE includes REITs, InvITs in Nifty indices, effective from September 30 - Check movements in Brookfield, Mindspace, India Grid Trust, IRB InvIT share price

The National Stock Exchange while revising the criteria has allowed the inclusion of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in the Nifty indices. 

“All equity shares, REITs and InvITs, that are traded at the NSE are eligible for inclusion in the Nifty indices effective September 30, 2021,” according to the press note released on August 23, 2021. At present, REITs and InvITs were not specifically allowed to be part of Nifty indices, the note said.

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REITs are the companies that owns, operates, income-producing real estate that is from commercial real estate, ranging from office and apartment buildings to warehouses. Whereas, InvITs are investment instruments that work like mutual funds and are regulated by SEBI.

Brookfield India Real Estate, Mindspace Business Parks REIT, and Embassy Office Parks REIT among others are listed REIT companies on exchanges and have been trading mixed on Tuesday.

At around 11:40 am, Brookfield India is trading near 0.5 per cent lower to Rs 255.49 per share, Mindspace Business Parks is down by over 1 per cent to Rs 291.3 per share and Embassy Office is flat with a negative bias at Rs 347 per share on the BSE.

Similarly, India Grid Trust and IRB InvIT are the two listed InvIT companies on the exchanges, the former is trading over 0.5 per cent higher to Rs 135.88 per share, while the latter is lower marginally by 0.4 per cent to Rs 54.46 per share on the BSE during today’s trade at around 11:40 am.

The exchange in its semi-annual review of indices has included Bank of Baroda, Cholamandalam Investment, Jindal Steel, PI Industries, and SAIL as part of Nifty Next 50. While it excluded Abbott India, Alkem Laboratories, MRF, Petronet LNG, and United Breweries.

Meanwhile, the exchange has also revised the criteria for Nifty Pharma, allowing the top 20 stocks to be included in the index based on the six-month average free-float market cap. So far, the top 10 stocks based on a six-month average free-float market cap are selected.