Updated February 29th, 2024 at 15:08 IST

Shriram Finance surges as it joins Nifty 50 index; UPL falls on exit

The alteration in index composition is a result of the periodic review of broad market indices conducted by the National Stock Exchange (NSE).

Reported by: Business Desk
Shriram Finance commands a market capitalisation of Rs 89,766.45 crore | Image:NSE
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Nifty 50 reconstitution: Shriram Finance shares rose as much as 4.42 per cent to hit an intraday high of Rs 2,453.05. The surge came on the back of its inclusion in the benchmark Nifty 50 index. On the flipside, UPL, an agrochemical manufacturer, saw its shares fall by as much as 1.82 percent following its exclusion from the National Stock Exchange's benchmark Nifty 50 index, which is set to take effect on March 28.

The alteration in index composition is a result of the periodic review of broad market indices conducted by the National Stock Exchange. UPL's removal from the blue-chip index follows its exclusion from the Nifty 100, which serves as the parent index for the Nifty 50, as stated by the NSE in an official statement.

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Shriram Finance's inclusion in the Nifty 50 comes as it boasts the highest six-month average free-float market capitalisation among all eligible stocks to replace UPL, according to the NSE's announcement.

Market data from stock exchanges underscores the substantial difference in market capitalisation between the two entities. Shriram Finance commands a market capitalisation of Rs 89,766.45 crore, while UPL holds a market capitalisation of Rs 36,074 crore, underscoring the contrasting fortunes of the two companies in today's trading session.

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As of 12:21 pm, Shriram Finance shares traded 2.21 per cent higher at Rs 2,401 while UPL was down 0.6 per cent at Rs 472.90.

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Published February 29th, 2024 at 12:25 IST