The National Stock Exchange (NSE) has announced that Shree Cement will be replacing Yes Bank in the Nifty50 index. The changes will be effective from March 27, 2020. The changes were announced on Tuesday evening.
Yes Bank suffered a 6.33% fall closed at Rs 34.80 at the end of the day on the NSE, whereas Shree Cements closed at Rs 23,912.85, a fall of 0.48%.
In a release, the NSE further stated that under Nifty, IT, Hexaware Tech and Tata Elxsi will be dropped as well, and the two firms will be replaced by InfoEdge and Mphasis.
Further, Vodafone Idea, Ashok Leyland, Indiabulls Housing Finance, L&T Finance Holdings and Shree Cement will be dropped from Nifty Next 50, NSE Indices said in a statement.
Adani Transmission, IDBI Bank, Info Edge (India) Ltd, Larsen & Toubro Infotech and Torrent Pharmaceuticals would be added in Nifty Next 50 index.
NSE Indices has revised the eligibility criteria for inclusion in Nifty's 17 sectoral indices. Under the new criteria, companies should be a part of Nifty 500 at the time of review. 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 the index.
At present, companies need to rank within the top 800 based on both average daily turnover and average daily full market capitalization based on the previous six months period data for inclusion in the indices.
(with PTI inputs)