Five stocks replaced in Nifty Next 50 from June 26th

Published: July 8, 2020 at 10:32 am

Last Updated on September 12, 2020

The NSE has made several changes to its indices in its late-June portfolio reset. Notable are fives changes in Nifty Next 50, twelve from Nifty Midcap 100 and twenty-five from Nifty 500. Here is a selected listing.

Broad market NIfty indices are reviewed in March and September each year. However additional changes can be made if any stock undergoes a corporate event such as a merger, spin-off, compulsory delisting or suspension etc. According to the Nifty index methodology document, “the equity shareholders’ approval to a scheme of arrangement is considered as a trigger to initiate the exclusion of such stock from the index through additional index reconstitution”. In addition, compliance of stock weights with SEBI’s Portfolio Concentration Norms for ETFs and Index Funds is ensured each quarter.

Nifty Growth Sectors 15: Sectors that exhibit PE and PB on average greater than the Nifty are first selected. Then, the top 50% market cap of all such stocks is shortlisted and ranked in terms of EPS growth. Top 15 in the list forms the index.

ExclusionDr. Reddy’s Laboratories Ltd.
ExclusionExide Industries Ltd.
ExclusionIndusInd Bank Ltd.
InclusionAurobindo Pharma Ltd.
InclusionHero MotoCorp Ltd.
InclusionICICI Bank Ltd.

Nifty low volatility 50: The Low volatility 50 is selected from the top 300 companies (arranged by the free-float market cap) and by choosing the ones with the lowest standard deviation of daily returns (volatility). The stocks with the lowest volatility has a higher weight. I had earlier shown how impressive this index has fared against Quantum Long Term Equity: Nifty Low Volatility 50: A Benchmark Index to watch out for

ExclusionHousing Development Finance Corporation Ltd.
ExclusionMahindra & Mahindra Ltd.
ExclusionReliance Industries Ltd.
ExclusionCity Union Bank Ltd.
ExclusionGodrej Industries Ltd.
ExclusionNIIT Technologies Ltd.
ExclusionOil India Ltd.
ExclusionCastrol India Ltd.
InclusionGlaxosmithkline Pharmaceuticals Ltd.
InclusionPfizer Ltd.
InclusionThermax Ltd.
InclusionLupin Ltd.
InclusionDivi’s Laboratories Ltd.
InclusionTorrent Power Ltd.
InclusionUnited Breweries Ltd.
InclusionCrompton Greaves Consumer Electricals Ltd.

Nifty Alpha 50: Alpha is a measure of outperformance with respect to a risk-free rate and correlation with a given index. The alpha 50 is an index of 50 stocks that has the highest alpha among the top 300 stocks in terms of market cap is selected. Almost half the index has changed!

ExclusionBajaj Finance Ltd.
ExclusionCan Fin Homes Ltd.
ExclusionProcter & Gamble Health Ltd.
ExclusionKotak Mahindra Bank Ltd.
ExclusionSiemens Ltd.
ExclusionTitan Company Ltd.
ExclusionAxis Bank Ltd.
ExclusionUPL Ltd.
ExclusionPVR Ltd.
ExclusionDCB Bank Ltd.
ExclusionPower Finance Corporation Ltd.
ExclusionREC Ltd.
ExclusionBajaj Holdings & Investment Ltd.
ExclusionBajaj Finserv Ltd.
ExclusionGodrej Properties Ltd.
ExclusionOberoi Realty Ltd.
ExclusionPrestige Estates Projects Ltd.
ExclusionJustdial Ltd.
ExclusionInterGlobe Aviation Ltd.
ExclusionAavas Financiers Ltd.
ExclusionAdani Gas Ltd.
InclusionBalkrishna Industries Ltd.
InclusionBerger Paints India Ltd.
InclusionCoromandel International Ltd.
InclusionDeepak Nitrite Ltd.
InclusionDr. Reddy’s Laboratories Ltd.
InclusionEscorts Ltd.
InclusionNestle India Ltd.
InclusionRallis India Ltd.
InclusionTata Consumer Products Ltd.
InclusionTorrent Pharmaceuticals Ltd.
InclusionWhirlpool of India Ltd.
InclusionAjanta Pharmaceuticals Ltd.
InclusionBharti Airtel Ltd.
InclusionGranules India Ltd.
InclusionNavin Fluorine International Ltd.
InclusionRelaxo Footwears Ltd.
InclusionAlembic Pharmaceuticals Ltd.
InclusionAvenue Supermarts Ltd.
InclusionICICI Securities Ltd.
InclusionMetropolis Healthcare Ltd.
InclusionDixon Technologies (India) Ltd.

Nifty Dividend Opportunities 50: Top 50 stocks ranked in terms of dividend yield from the top 300 stocks (market cap) make up this index. This rejig saw 17 changes!

ExclusionReliance Infrastructure Ltd.
ExclusionGraphite India Ltd.
ExclusionProcter & Gamble Health Ltd.
ExclusionGujarat Narmada Valley Fertilizers and Chemicals Ltd.
ExclusionGujarat State Fertilizers & Chemicals Ltd.
ExclusionH.E.G. Ltd.
ExclusionHindustan Zinc Ltd.
ExclusionJM Financial Ltd.
ExclusionReliance Capital Ltd.
ExclusionVedanta Ltd.
ExclusionSouth Indian Bank Ltd.
ExclusionSonata Software Ltd.
ExclusionKarnataka Bank Ltd.
ExclusionOracle Financial Services Software Ltd.
ExclusionPower Finance Corporation Ltd.
ExclusionIRB Infrastructure Developers Ltd.
ExclusionICICI Prudential Life Insurance Company Ltd.
InclusionAshok Leyland Ltd.
InclusionMphasiS Ltd.
InclusionBharat Electronics Ltd.
InclusionCESC Ltd.
InclusionNestle India Ltd.
InclusionTata Steel Ltd.
InclusionTata Power Co. Ltd.
InclusionGAIL (India) Ltd.
InclusionStrides Pharma Science Ltd.
InclusionHexaware Technologies Ltd.
InclusionMahindra & Mahindra Financial Services Ltd.
InclusionEmami Ltd.
InclusionTorrent Power Ltd.
InclusionMulti Commodity Exchange of India Ltd.
InclusionCentral Depository Services (India) Ltd.
InclusionICICI Securities Ltd.
InclusionRITES Ltd.

Nifty 50: No change as on 26th June 2020. In March Shree Cement replaced Yes Bank. HDFC Life will replace Vedanta from end-July 2020 as the latter stock is going ‘private’.

Nifty Next 50, Nifty 100: Fives changes from 26th June.

ExclusionAshok Leyland Ltd.
ExclusionVodafone Idea Ltd.
ExclusionL&T Finance Holdings Ltd.
ExclusionIndiabulls Housing Finance Ltd.
ExclusionTata Motors Ltd DVR
ExclusionThe New India Assurance Company Ltd.
InclusionAbbott India Ltd.
InclusionTorrent Pharmaceuticals Ltd.
InclusionIndraprastha Gas Ltd.
InclusionInfo Edge (India) Ltd.
InclusionMuthoot Finance Ltd.

Nifty Midcap 100:  12 changes. IRCTC within 9 months of its listing is now part of this index.

ExclusionGraphite India Ltd.
ExclusionH.E.G. Ltd.
ExclusionTorrent Pharmaceuticals Ltd.
ExclusionEngineers India Ltd.
ExclusionSterlite Technologies Ltd.
ExclusionIndraprastha Gas Ltd.
ExclusionInfo Edge (India) Ltd.
ExclusionIndian Bank
ExclusionMuthoot Finance Ltd.
ExclusionNBCC (India) Ltd.
ExclusionFuture Consumer Ltd.
ExclusionVarroc Engineering Ltd.
InclusionAarti Industries Ltd.
InclusionAshok Leyland Ltd.
InclusionTrent Ltd.
InclusionNIIT Technologies Ltd.
InclusionVodafone Idea Ltd.
InclusionL&T Finance Holdings Ltd.
InclusionIndiabulls Housing Finance Ltd.
InclusionGujarat Gas Ltd.
InclusionDr. Lal Path Labs Ltd.
InclusionAdani Gas Ltd.
InclusionPolycab India Ltd.
InclusionIndian Railway Catering And Tourism Corporation Ltd.

Source: NSE Index Monthly Reports

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