Zomato, Paytm and Nykaa to take a pew in Nifty Next 50 index. Here’s The Details

From March 31, 2022, newly listed equities Zomato, One97 Communications (Paytm), and FSN E-Commerce Ventures (Nykaa) will be included in the Nifty Next 50 index. The stock exchange’s announcement of a change in criteria has allowed these stocks, which were listed last year, to join the index. As part of its periodic assessment, the Index Maintenance Sub-Committee-Equity (IMSC) of NSE Indices Limited has agreed to amend the eligibility criteria for Nifty equity indices and replace stocks in various indices, as indicated below. According to a circular issued by the NSE on Thursday, these modifications will take effect on March 31, 2022.

The committee has opted to make modifications to the NIFTY equity indexes’ eligibility requirements. According to the new technique, constituents must have a minimum listing history of one calendar month as of the cut-off date, as opposed to three months previously.

“Now constituents should have a minimum listing history of 1 calendar month as of the cut-off date vs. the earlier requirement of 3 months.This has paved the way for stocks like Nykaa, Paytm, Policy Bazaar, and Latent View to get listed after October 2021. From a passive tracking perspective, new criteria have helped Nykaa and Paytm to get included in the Nifty Next 50,” said Abhilash Pagaria, Head, Alternatives Research, Edelweiss Securities.

Six stocks will replace Apollo Hospitals Enterprise, Aurobindo Pharma, HPCL, IGL, Jindal Steel & Power, and Yes Bank from the Nifty Next 50 index: Nykaa, Indian Oil Corporation (IOC), MindTree Ltd, Paytm, SRF Ltd, and Zomato Ltd.

Furthermore, Apollo Hospitals will replace IOC in the Nifty 50 index, while Bank of Baroda will be included in the Nifty Bank index as RBL Bank is removed from the banking index.

“Nifty Indices rebalance has come in line with Edelweiss predictions. In Nifty 50, Apollo Hospital will see an inflow of $143 billion while Indian Oil will be removed and it will see an outflow of $91 million. Within Nifty Bank, Bank of Baroda will gain $53 million, while RBL will see an outflow of $23 million,” the brokerage said.