The National Stock Exchange (NSE) has revised criteria and replacement for its indices. It has decided to remove Yes Bank from its Nifty 50 index from 27 March 2020. Yes Bank will be replaced by Shree Cement Ltd in the NSE 50-stock index.
The index maintenance sub-committee (IMSC) of NSE Indices Ltd has decided to make changes in various indices, NSE said in a release.
The IMSC also decided to revise eligibility criteria for 17 Nifty indices. At present, to be included in these 17 Nifty indices, companies should be ranked within top-800, based on both average daily turnover and average daily full market-capitalisation, based on previous six months' data. This has now changed and, at the time of review, the companies should form part of Nifty 500.
The indices are Nifty Auto, Nifty Bank, Nifty Financial Services, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Pharma, Nifty Private Bank, Nifty Realty, Nifty Commodities, Nifty Energy, Nifty India Consumption, Nifty Infrastructure, Nifty MNC, Nifty PSE and Nifty Services Sector.
"In case, the number of eligible stocks representing a particular sector within NIFTY 500 falls below 10, then deficit number of stocks shall be selected from the universe of stocks ranked within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for index rebalancing of NIFTY 500," the release says.
The IMSC also decided to replace five companies from its Nifty 100 index. Ashok Leyland Ltd, Indiabulls Housing Finance Ltd, L&T Finance Holdings Ltd, Vodafone Idea Ltd and Yes Bank Ltd would be replaced by Adani Transmission Ltd, IDBI Bank Ltd, Info Edge (India) Ltd, Larsen & Toubro Infotech Ltd and Torrent Pharmaceuticals Ltd in this index.
No changes are being made to Nifty Auto, Nifty Bank, Nifty Metal, Nifty Oil & Gas, Nifty PSU Bank, Nifty Private Bank, Nifty Realty, Nifty Energy, Nifty Infrastructure, Nifty PSE, Nifty Aditya Birla Group, Nifty Mahindra Group, Nifty Tata Group And Nifty Tata Group 25% Cap indices.