Shriram Finance in Nifty 50: Non-banking finance company (NBFC) Shriram Finance, is set to replace agrochemical company UPL on the blue-chip Nifty 50 index, with effect from March 28 this year.  This information was shared by the National Stock Exchange (NSE) on Wednesday.

The transition is part of a periodic review of broad market indices. UPL has been removed from the blue-chip index after its exclusion from the Nifty 100, a parent index for the Nifty 50, the NSE said in a comminique.

Shriram Finance has the highest six-month average free-float market capitalization among all stocks eligible to replace UPL, the statement said. Shares of Shriram Finance rose as much as 2.8 per cent in the day before closing 1 per cent lower in a weak market. UPL closed down 1.8 per cent. 

The NIFTY 50 index is the most important stock market index in India, that represents the weighted average of 50 of the largest Indian companies listed on NSE. It has 50 major companies across 13 sectors that represent the overall economic conditions of the Indian economy.

(With Reuters inputs)