A PSU lender to replace Bandhan Bank in Nifty Bank; a summary of latest NSE index changes
The NSE Indices Committee has announced changes for the September 2024 rejig, which have aligned precisely with Nuvama Alternative's predictions. The changes will be effective Friday (September 30)
Nifty inclusion and deletions
The beauty of benchmark methodologies (most part is quantitative driven) is that they reward winners while
replacing underperformers, said the Nuvama release.
In the Nifty50 index, Trent and Bharat Electronics will be added, while the one's that will see exclusion are Divi's Laboratories and LTIMindtree.
Expected inflows and outflows on Nifty 50 rejig
Nuvama Research estimates that upon the inclusion in Trent and Bharat Electronics, there is expected a net inflow
upwards of USD 470 million and USD 335 million, respectively. Nionetheless, Divis Laboratories and LTIMindtree
will witness an outflow to the tune of USD 180 mn and USD 150 mn, respectively.
Nifty Next50 rejig
The likely inclusions in the index are Divi's Labs (USD 79 mn), LTI Mindtree (USD 66 mn), Bharat Heavy Electricals (USD 49 mn), JSW Energy (USD 47 mn), Lodha (USD 41 mn), NHPC (USD 39 mn) & Union Bank (USD 31 mn). Exclusions, meanwhile, from the index are Trent (USD 175 mn), Bharat Electronics (USD 125 mn), Colgate (USD 57 mn), SRF (USD 43 mn), Marico (USD 42 mn), SBI Card (USD 25 mn) & Berger Paints (USD 19 mn).
Nifty Bank rejig
Canara Bank (CBK IN) is expected to experience a net inflow upwards of USD 44 mn, while upon exclusion Bandhan Bank (BANDHAN IN) will witness an outflow to the tune of USD 37 mn.
Nifty 100 index rejig
3 PSU stocks namely BHEL, NHPC and Union Bank found their place in the index, while others to be included in the index are JSW Energy and Lodha Developers. The stocks to be excluded are Berger Paints, Colgate Palmolive, Marico, SBICard and SRF.
Nifty Midcap 100 rejig
Stocks to be included are Bharti Hexacom, Central Bank of India, Cochin Shipyard, Colgate Palmolive, Exide Industries and 14 more stocks. While the stocks to be excluded are BHEL, Deepak Nitrite, Fortis Healthcare and Gland Pharma among others.