Edelweiss group has researched the stocks which can be included in the Nifty 50 index till September 2021. The two companies are Avenue Supermart (D-Mart) and Info Edge, there are various benefits as well to be included in the Nifty 50 index which we will discuss as we move ahead.
Stock to be included in Nifty 50 are:
1. Avenue Supermart (D-Mart):
- The company already has a market cap that is sufficient to enter the Nifty 50 segment but according to the norms, the Free-Float capitalization was low.
- Now the promoters have started reducing their stake in the company to increase the market cap.
- Additionally, a company should also be a part of the Derivatives Segment. Which according to the report, can be fulfilled by the end of August.
- The expected weightage of the stock in Nifty 50 can be 0.72%.
- According to the reports, the market cap of Info Edge is going to be 1.5 times of the last company in the Nifty 50 segment.
- This stock can also be added by September 2021 to the Nifty 50 index.
- The expected weightage of the stock in Nifty 50 can be 0.55%.
Benefits of inclusion in the Nifty 50 index:
- The passive funds which allocate their capital to Nifty 50 only will start flowing their capital in these stocks according to their weightage.
- The inflows expected in Avenue Supermart can be around $140 million or Rs. 1,050 Cr. and in Info Edge around $110 million or Rs. 800 Cr. from the passive index funds as well as other index funds.
Both the companies are trading at a premium valuation in the stock market. The aggressive investors can look for these stocks to add to the portfolio as the volatility is on the higher side. One should do proper research before investing.