Nifty 50 index witnesses a Replacement of UPL from 28th March

The Nifty 50 Index of the National Stock Exchange will undergo a modification as per its regular assessment. UPL Ltd. will be replaced by Shriram Finance Ltd. in the index. This alteration will come into effect on March 28, 2024.

According to the statement of NSE, "The Index Maintenance Sub-Committee (Equity) of NSE Indices Limited has decided to make the replacement of stocks in various indices as part of its periodic review as listed hereunder. These changes shall become effective from March 28, 2024 (close of March 27, 2024)." It also added that, UPL has been excluded from the Nifty 50 index due to its removal from the Nifty 100 index, which serves as the parent index for Nifty 50. 

In its place, Shriram Finance has been included in the Nifty 50 index as a replacement for UPL, as it holds the highest 6-month average free-float market capitalization within the eligible universe.

According to its press release on Wednesday, the NSE mentioned that, Abbott India Ltd., Balkrishna Industries Ltd., Bandhan Bank Ltd., and PFC in the Nifty Midcap Select index will be replaced by Lupin Ltd., PI Industries Ltd., UPL and Vodafone Idea Ltd

Adani Power Ltd, Indian Railway Finance Corporation Ltd, Jio Financial Services Ltd, Power Finance Corporation Ltd, and REC Ltd have been added to the Nifty Next 50 index.

26 more companies including Brightcom Group Ltd., G R Infraprojects Ltd., Nazara Technologies, Pfizer Ltd., TTK Prestige Ltd., Shoppers Stop Ltd., Teamlease Services, Zydus Wellness would be cut out of the deal and will be replaced by Cello World, DOMS Industries, Happy Forgings, Honasa Consumers, IREDA, Inox Wind Ltd., Jio Financial Services and Titagarah Rail Systems, among others.

Shriram Finance has been added to the Nifty 50 index due to having the highest 6-month average free-float market capitalization among eligible companies, replacing UPL.

In Nifty Auto it showed few changes, in which Apollo Tyres, Exide Industries, Tata Motors DVR are inclusions while Sona BLW Precision Forgings and Tube Investments of India are exclusions.