InvestorQ : What change NSE has taken on Nifty 50 index?
ananya Sing made post

What change NSE has taken on Nifty 50 index?

Answer
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1 year ago


Yeah, it is true as the Index Maintenance Sub-committee (IMSC) of the National Stock Exchange Indices, has confirmed this. In its press note, the committee informed that it has decided to replace the oil marketing company- Hindustan Petroleum Corporation (HPCL) with Britannia Industries on the flagship Nifty50. This change will effective from March 29, 2019.

Other than Nifty 50, the committee has also decided to incorporate changes in Nifty Next 50, Nifty500, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty Midcap 50, and Nifty Midcap 100.

The HPCL stock plunged down 42% from its 52-week high. Its a market-capitalization as of Monday 25 Feb was ?34,774 crore, which is half of Britannia Industries’ market capitalization of ?73,254 crore currently. The exchange is also looking forward to revise its methodology of sectoral and thematic indices.

It should be noted that National Stock Exchange criteria to select the Nifty 50 constituents is the free-float market capitalisation of the company which should be at least 1.5 times of the smallest member of the index. The indices are made up of a few selected listed stock. This selection of stock is on the basis of diversification, market capitalization, business phase, and industry as decided by the NSE committee.