InvestorQ : What are the changes being made to the Nifty Index in September?
Anu Biswas made post

What are the changes being made to the Nifty Index in September?

Answer
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Ria Jain answered.
1 month ago


In the immediate aftermath of the last change in the nifty constituents, comes another change in the Nifty in September. The latest round of Nifty changes will take effect from the day after the September F&O expiry date on the last Thursday.

There are two key additions to the Nifty. Divi’s Laboratories and SBI Life Insurance will be added to the Nifty 50 index. This is likely to lead to infusion of Rs.1450 crore into these two stocks and that is already reflect in the rally. Both stocks have rallied sharply in 2020.

The two major exits from the Nifty are Zee Entertainment and Bharti Infratel. Due to their exit from the index, these two stocks will see adjustment outflows of Rs.650 crore as ETFs and other index funds adjust their portfolio accordingly.

The addition of Divi was expected as it has been an outperformer. SBI Life will give better representation to life insurance in the index. As of now, HDFC Life is the only life insurance company in the Nifty. Zee’s exit was expected due to the management shift.