The National Stock Exchange (NSE) on Tuesday 23rd Feb 2021 revised the index maintenance guidelines, criteria and methodology. The changes will be effective from 31 March 2021. Means effective April 2021 F&O series.
The changes in the index are part of a periodic review conducted by the Index Maintenance Sub-Committee, the National Stock Exchange said in a release. From March 31, there will be changes to
- index reconstitution date,
- a quarterly rebalancing of shares and investible weight factors,
- calculation of price to earnings ratio (P/E ratio) and
- calculation of dividend yield percentage for indices, among others.
Change to be made to Nifty 50 index (the main index)
Tata Consumer Products Ltd will be included, while GAIL (NS:GAIL) (India) Ltd will be excluded from the Nifty 50 indexes from 31 March 2021.
Changes to be made to Nifty Next 50 index are
Stock Inclusion (to be added)
- Adani Enterprises (NS:ADEL)
- Apollo Hospitals (NS:APLH) Enterprise
- GAIL
- Jubilant Foodworks (NS:JUBI)
- M.R.F. Ltd. (NS:MRF)
- Vedanta Ltd (NS:VDAN) and
- Yes Bank (NS:YESB)
To be excluded (will be removed from the Nifty 50 indexes)
- Bank of Baroda Ltd (NS:BOB)
- Container Corporation (NS:CCRI) of India
- General Insurance Corporation of India (NS:GENA)
- Hindustan Zinc (NS:HZNC)
- Oracle Financial Services Software (NS:ORCL)
- Power Finance (NS:PWFC) Corporation and
- Tata Consumer Products Ltd (NS:TACN)
Change to Nifty Bank Index
AU Small Finance Bank Ltd will make its entry to Nifty Bank index, Bank of Baroda will be excluded from the index.
The NSE also announced changes in other indices like Nifty 500, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, among others.
For more information about the changes please visit the following link https://www1.nseindia.com/supra_global/content/iisl/press_rel.htm