NSE Indices Rejig: BEL, Trent To Enter Nifty 50; Vodafone Idea's Exclusion Revoked; Stocks In Focus

In the latest update of its semi-annual rejig of the largest stock exchange, NSE has decided to revoke its exclusion of telecom company, Vodafone Idea. The latest rejig in indices will come into effect from September 30. The biggest change is in Nifty 50, where two giants like Bharat Electronics (BEL) and Tata Group-backed company Trent will replace LTIMindtree and Divi's Lab in the mainboard.

As per the latest update, NSE said, "As part of periodic review of various indices, the Index Maintenance SubCommittee (Equity) of NSE Indices Limited had announced exclusion of Vodafone Idea Ltd. (IDEA) from various Nifty indices with effect from September 30, 2024, on account of non-compliance with impact cost criteria. The Committee has decided to revoke its decision to exclude IDEA from various indices following the recalculation of security's impact cost by NSE.

"The Committee has decided to revoke its decision to exclude IDEA from various indices following the recalculation of security's impact cost by NSE," the exchange said on September 25.

Also, NSE announced with an aim to provide prior communication of 4 weeks in case of changes in Nifty Midcap Select index, which is available for trading under F&O segment at NSE, the effective date for changes in the index announced earlier on August 23, 2024 has been postponed. The changes shall now become effective from October 25, 2024 (close of October 24, 2024) instead of September 30, 2024 as announced earlier.

NSE announced the exclusion of Vodafone Idea Ltd. (IDEA) from various Nifty indices with effect from September 30, 2024, on account of non-compliance with impact cost criteria. The announcement was made on August 23, 2024, as part of its periodic review of various indices.

Hence, Vodafone Idea's exclusion from Nifty 500, Nifty Midcap 150, Nifty Midcap 100, NIFTY 200, Nifty LargeMidcap 250, Nifty MidSmallCap 400, and other indices has been revoked.

Further, NSE said in the latest statement, "The above change in Nifty 500 index will also be applicable to Nifty500 Multicap 50:25:25, Nifty500 LargeMidSmall Equal-Cap Weighted and Nifty500 Equal Weight indices."

Nifty 50 Rejig:

With effect from September 30, defence PSU giant BEL and Trent will be included in NIFTY 50, replacing Divi's Lab and LTIMindtree.

On August 23, NSE said that Trent Ltd. (average free-float market capitalization Rs. 99,364 crores) and Bharat Electronics Ltd. (average free-float market capitalization Rs. 89,317 crores) have been included in Nifty 50 index as the 6-month average free-float market capitalization of these companies within eligible universe is at least 1.5 times the 6-month average free-float market capitalization of the smallest constituents i.e. LTIMindtree Ltd (average free-float market capitalization Rs. 47,022 crores) and Divi's Laboratories Ltd. (average free-float market capitalization Rs. 51,261 crores) respectively.

Earlier, as per the JM Financial report, the inclusion of Trent and BEL will lead to an inflow of $523 million and $394 million from September 1, 2024.

On the other hand, JM's note highlighted that the exclusion of Divi's Lab and LTIMindtree would result in an outflow of $205 million and $221 million respectively.

Among other rejigs were in Nifty Next 50 index, Nifty 500, Nifty 100, and others in large-caps, mid-caps, and small-caps.

On Nifty Next 50, Berger Paints, bel, Colgate Palmolive, Marico, SBI Cards, SRF, and Trent will be excluded. While they will be replaced by Bharat Heavy Electricals (BHEL), Divi's Laboratories, JSW Energy, LTIMindtree, Microtech Developers, NHPC, and Union Bank of India.

Overall, NSE had said that these changes shall become effective from September 30, 2024 (close of September 27, 2024).