The National Stock Exchange (NSE) announced on Wednesday that non-banking finance firm Shriram Finance will replace agrochemical company UPL in the benchmark Nifty 50 index from March 28.

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The exchange stated that the move is part of a periodic review of broad market indices, and Shriram Finance has replaced UPL Ltd in the Nifty50 index, due to its highest 6-month average free-float market capitalization.

"Shriram Finance has been included in Nifty 50 index as it has highest 6 month average free-float market capitalization within eligible universe as a replacement to UPL Ltd," NSE Indices said in a statement.

UPL has been removed from the blue-chip index after its exclusion from the Nifty 100, a parent index for the Nifty 50, the statement added.

Among the companies that have joined the Nifty Next 50 index are Adani Power, Indian Railway Finance Corporation, Jio Financial Services, Power Finance Corporation, and REC Ltd. 

On the flip side, Adani Wilmar, Muthoot Finance, PI Industries, Procter & Gamble Hygiene & Health Care, and Shriram Finance have been removed from the Nifty Next 50 index.

Apart from Nifty 50 and Nifty Next 50, changes have been announced in several indices, including Nifty 500 and Nifty 100. Changes have also been made in slew of sectoral indices such as Pharma, realty, media, FMCG, auto, financial services and consumer durables.

The Index Maintenance Sub-Committee (Equity) of NSE Indices Ltd has decided to make the replacement of stocks in various indices as part of its periodic review. These changes will become effective from March 28, 2024.