NSE indices semi-annual adjustment due today; analysts peg Shriram Finance inflows at Rs 1,570 crore

A semi-annual rejig of key NSE indices is due at the end of the day’s trade on Wednesday, March 27, which will see non-banking financial company Shriram Finance replace agrochemicals producer UPL in the headline Nifty 50 index. Stock exchange NSE announced the changes, spanning a host of indices including Nifty50, Nifty Next50, Nifty 100, Nifty Midcap 100, Nifty Nifty Smallcap 100, and Nifty 500, on February 28.

According to Zee Business research, the rejig is expected to result in net inflows to the tune of Rs 1,570 crore in Shriram Finance and Rs 780 crore in HDFC Bank. Here’s the list:

According to Nuvama Alternative and Quantitative Research upon the Nifty 50 rejig, weights of M&M, Bharti Airtel, Tech Mahindra and Axis Bank will go up, while those of Reliance Industries, HDFC Bank, ICICI Bank, Infosys, L&T, TCS, SBI and Kotak Mahindra Bank will go down.

In the Nifty Next 50 index, which represents 50 companies from Nifty 100 after excluding the Nifty 50 companies, will see the inclusion of Jio Finance, PFC, REC, Adani Power and IRFC, and the exclusion of Shriram Finance, PI Industries, Muthoot Finance, Adani Wilmar, and P&G Hygiene & Health.

UPL’s imminent removal from the Next 50 index follows its exclusion from the Nifty 100 index, a parent index for the Nifty 50, according to NSE.

Furthermore, within the Nifty CPSE index, state-run NTPC, NHPC and NLC India will see their weights increase after the rejig. The rebalancing will likely result in passive inflows of $94 million according to Nuvama.

Other indices that will undergo changes include Nifty Midcap 150, Nifty Midcap 50, Nifty Smallcap 250, and Nifty Smallcap 50.

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