Shriram Finance gain 4.5% as the company will replace UPL in Nifty50 index from March 28
Shriram Finance share price: Shares of Shriram Finance hogged the limelight after the National Stock Exchange (NSE) announced that the non-banking finance firm will replace agrochemical company UPL in the benchmark Nifty 50 index from March 28.
Shriram Finance to replace UPL in Nifty 50, Shriram Finance share price: Shares of Shriram Finance on Thursday, February 29 hogged the limelight after the National Stock Exchange (NSE) announced on Wednesday that the non-banking finance firm will replace agrochemical company UPL in the benchmark Nifty 50 index from March 28. According to the exchange, this change is part of a periodic review of broad market indices.
The NBFC stock rose as much as 4.52 per cent to the day's high of Rs 2,455.1 on NSE in early deals. Snapping the two-day fall, the counter closed at Rs 2,437.95, up 3.8 per cent or Rs 89.15 NSE.
Why has Shriram Finance replaced UPL in the Nifty50 index?
Shriram Finance has replaced UPL Ltd in the Nifty50 index due to its highest six-month average free-float market capitalisation.
NSE, in a statement, said, "Shriram Finance has been included in the Nifty50 index as it has the highest six-month average free-float market capitalisation within the eligible universe as a replacement to UPL Ltd."
UPL is out of the blue-chip index after its exclusion from the Nifty 100, a parent index for the Nifty 50, the statement further said.
Notably, the Index Maintenance Sub-Committee (Equity) of NSE Indices has decided to replace stocks in various indices as part of its periodic review. These changes will become effective from March 28, 2024. Read more
Shriram Finance share price target: Morgan Stanley maintains 'Overweight'
Morgan Stanley has maintained an overweight call on Shriram Finance with a target price of Rs 3,000. The target implies an upside of 28.64 per cent from the previous close.
What does Anil Singhvi suggest?
Zee Business Managing Editor Anil Singhvi recommends a buy in Shriram Finance futures with a stop loss at Rs 2,300 for targets of Rs 2,365, Rs 2,390, Rs 2,450 and Rs 2,475 "Our old-time favourite NBFC included in Nifty50," said the market wizard.
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