Nifty Index Changes – Stock Reshuffle
7 min readChanges in various Nifty Indices w.e.f. 29th March, 2019
NIFTY or NIFTY 50 index is National Stock Exchange of India’s benchmark, a broad based stock market index for the Indian equity market. Full form of NIFTY is National Stock Exchange Fifty. There a lot of Nifty Index Changes which happen throughout the year – many indices saw changes as some small cap stocks became mid cap stocks and vice versa. And some mid cap stocks became large cap stocks and vice versa. As per the mandate by SEBI, the top 100 companies according to the market capitalization are called as the large cap companies. Companies from 101 to 250 (based on market capitalization) are the mid-cap companies and the rest, that is above 250 are the small cap companies.
So, after the new recategorization recently done by SEBI, NSE has now made changes in its indices and these changes will take effect from 29th March 2019. NSE does this review every month for few indices and yearly for rest.
Here are changes in Major Indices based on 31st Jan review which will be effective from 29th March, 2019: –
Changes in NIFTY 50
The following company is being excluded:
| Sr. No. | Company Name | Symbol |
| 1 | Hindustan Petroleum Corporation Ltd. | HINDPETRO |
The following company is being included:
| Sr. No. | Company Name | Symbol |
| 1 | Britannia Industries Ltd. | BRITANNIA |
All the ETF’s have to make investments as per the respective indices. For example, SBI Nifty ETF, is a very famous ETF, will now have to make to investments in Britannia Industries. So, the demand for Britannia Industries will start rising now. This is a very good news for Britannia Industries Ltd.
Changes in NIFTY Next 50
NIFTY Next 50 is gaining the same popularity as that of NIFTY 50. If you look at the performances of both the indices in the last 4-5 years and compare them, then it cam be seen that NIFTY Next 50 has been outperforming NIFTY 50.
The following companies are being excluded:
| Sr. No. | Company Name | Symbol |
| 1 | Aditya Birla Capital Ltd. | ABCAPITAL |
| 2 | Bharat Electronics Ltd. | BEL |
| 3 | Britannia Industries Ltd. | BRITANNIA |
| 4 | LIC Housing Finance Ltd. | LICHSGFIN |
| 5 | Oil India Ltd. | OIL |
| 6 | Sun TV Network Ltd. | SUNTV |
- Britannia Industries Ltd is the only company in that list to be excluded and promoted.
- Other all excluded companies have been removed and degraded to mid-cap indices.
The following companies are being included:
| Sr. No. | Company Name | Symbol |
| 1 | Bajaj Holdings & Investment Ltd. | BAJAJHLDNG |
| 2 | Divi’s Laboratories Ltd. | DIVISLAB |
| 3 | HDFC Asset Management Company Ltd. | HDFCAMC |
| 4 | Hindustan Petroleum Corporation Ltd. | HINDPETRO |
| 5 | Page Industries Ltd. | PAGEIND |
| 6 | United Breweries Ltd. | UBL |
- Hindustan Petroleum Corp. Ltd. has been removed from NIFTY and moved to NIFTY Next 50. Though it has been included here it is not a very good news for the company.
- HDFC AMC got listed recently and that is why it wasn’t there even in mid cap category. It is a new inclusion in large cap category. So, it is very good for HDFC AMC Ltd.
- It is a positive sign for all the other included companies. These companies got included means that they got upgraded.
Changes in NIFTY 100
Nifty 100 index is combination of NIFTY 50 and NIFTY Next 50. So, the list will be same here. The following companies are being excluded:
| Sr. No. | Company Name | Symbol |
| 1 | Aditya Birla Capital Ltd. | ABCAPITAL |
| 2 | Bharat Electronics Ltd. | BEL |
| 3 | LIC Housing Finance Ltd. | LICHSGFIN |
| 4 | Oil India Ltd. | OIL |
| 5 | Sun TV Network Ltd. | SUNTV |
The following companies are being included:
| Sr. No. | Company Name | Symbol |
| 1 | Bajaj Holdings & Investment Ltd. | BAJAJHLDNG |
| 2 | Divi’s Laboratories Ltd. | DIVISLAB |
| 3 | HDFC Asset Management Company Ltd. | HDFCAMC |
| 4 | Page Industries Ltd. | PAGEIND |
| 5 | United Breweries Ltd. | UBL |
Changes NIFTY Midcap 150
The following companies are being excluded:
| Sr. No. | Company Name | Symbol |
| 1 | Aarti Industries Ltd. | AARTIIND |
| 2 | Avanti Feeds Ltd. | AVANTIFEED |
| 3 | Bajaj Holdings & Investment Ltd. | BAJAJHLDNG |
| 4 | Divi’s Laboratories Ltd. | DIVISLAB |
| 5 | GE T&D Ltd. | GET&D |
| 6 | Page Industries Ltd. | PAGEIND |
| 7 | PC Jeweller Ltd. | PCJEWELLER |
| 8 | TV 18 Broadcast Ltd. | TV18BRDCST |
| 9 | United Breweries Ltd. | UBL |
| 10 | Vakrangee Ltd. | VAKRANGEE |
- Aarti Industries isn’t being degraded. It is going through a demerger and that is why it has been removed from all the indices. (The same thing had also happened with Vedanta & Grasim Industries
- Bajaj Holdings & Investment, Divi’s Laboratories, HDFC AMC, Page Industries and United Breweries are excluded because they been upgraded and included in Nifty Next 50 and Nifty 100 as mentioned above.
- All the other companies have been excluded as they been demoted from mid-cap to small cap.
- PC Jeweller had a lot of issues in terms of its Corporate Governance and that is why its stock price has come down considerably.
- Vakrangee Ltd. too had problems with its corporate governance.
The following companies are being included:
| Sr. No. | Company Name | Symbol |
| 1 | Aditya Birla Capital Ltd. | ABCAPITAL |
| 2 | Atul Ltd. | ATUL |
| 3 | Bharat Electronics Ltd. | BEL |
| 4 | Eris Lifesciences Ltd. | ERIS |
| 5 | Gujarat Fluorochemicals Ltd. | GUJFLURO |
| 6 | Ipca Laboratories Ltd. | IPCALAB |
| 7 | LIC Housing Finance Ltd. | LICHSGFIN |
| 8 | Oil India Ltd. | OIL |
| 9 | Relaxo Footwears Ltd. | RELAXO |
| 10 | Sun TV Network Ltd. | SUNTV |
- It is not very good for Aditya Birla Capital, Bharat Electronics, LIC housing Finance, Oil India and Sun TV Network to be included in this list as it is a demotion for them from large cap to mid-cap.
- All the other companies have been included as they been promoted from small cap to mid-cap.
Changes NIFTY Midcap 50
This index represents top 50 mid-cap stocks. The following companies are being excluded:
| Sr. No. | Company Name | Symbol |
| 1 | Dish TV India Ltd. | DISHTV |
| 2 | Divi’s Laboratories Ltd. | DIVISLAB |
| 3 | Page Industries Ltd. | PAGEIND |
| 4 | Reliance Power Ltd | RPOWER |
| 5 | United Breweries Ltd. | UBL |
- Dish TV has been excluded owing to the huge debt problem being face be the ZEE group and the debt on Dish TV too is also huge.
- Divi’s Laboratories, Page Industries and United Breweries have been excluded only to be included in NIFTY Next 50.
- As everyone knows Anil Dhirubhai Ambani Group (Reliance Group) is facing severe debt issued and has almost filed for bankruptcy for Reliance Communications. So, this was overall negative for the whole group of companies.
The following companies are being included:
| Sr. No. | Company Name | Symbol |
| 1 | Adani Power Ltd | ADANIPOWER |
| 2 | Bharat Electronics Ltd. | BEL |
| 3 | LIC Housing Finance Ltd. | LICHSGFIN |
| 4 | Oil India Ltd. | OIL |
| 5 | Sun TV Network Ltd. | SUNTV |
- Adani Power has been upgraded.
- Bharat Electronics, LIC Housing Finance, Oil India and Sun TV Network are included in this indices as these companies have moved from large cap to mid-cap category.
Changes in NIFTY LargeMidcap 250
The top 100 large cap companies and the next 150 companies are included here. So, NIFTY has taken these two together and made an index.
This is quite a crucial index, and one should follow this index. The companies excluded from this index are being excluded because of actual performance issues.
The following companies are being excluded:
| Sr. No. | Company Name | Symbol |
| 1 | Aarti Industries Ltd. | AARTIIND |
| 2 | Avanti Feeds Ltd. | AVANTIFEED |
| 3 | GE T&D Ltd. | GET&D |
| 4 | PC Jeweller Ltd. | PCJEWELLER |
| 5 | TV 18 Broadcast Ltd. | TV18BRDCST |
| 6 | Vakrangee Ltd. | VAKRANGEE |
- Aarti Industries isn’t being degraded as mentioned earlier. It is going through a demerger and that is why it has been removed from all the indices.
- All the other companies are downgrades from mid-cap to small cap.
- PC Jeweller had a lot of issues in terms of its Corporate Governance and that is why its stock price has come down considerably.
- Vakrangee Ltd. too had problems with its corporate governance.
- Avanti Feeds experienced a phenomenal growth and a downtrend has now started in the company.
The following companies are being included:
| Sr. No. | Company Name | Symbol |
| 1 | Aarti Industries Ltd. | AARTIIND |
| 2 | Avanti Feeds Ltd. | AVANTIFEED |
| 3 | GE T&D Ltd. | GET&D |
| 4 | PC Jeweller Ltd. | PCJEWELLER |
| 5 | TV 18 Broadcast Ltd. | TV18BRDCST |
| 6 | Vakrangee Ltd. | VAKRANGEE |
- All the companies in this list have been included as a result of promotions.
Changes in NIFTY 200
The following companies are being excluded:
| Sr. No. | Company Name | Symbol |
| 1 | Avanti Feeds Ltd. | AVANTIFEED |
| 2 | Central Bank of India | CENTRALBK |
| 3 | PC Jeweller Ltd. | PCJEWELLER |
| 4 | TV 18 Broadcast Ltd. | TV18BRDCST |
| 5 | Vakrangee Ltd. | VAKRANGEE |
- The position of Central Bank of India has gone below 200, between 200-250.
The following companies are being included:
| Sr. No. | Company Name | Symbol |
| 1 | Bajaj Holdings & Investment Ltd. | BAJAJHLDNG |
| 2 | GlaxoSmithKline Consumer Healthcare Ltd. | GSKCONS |
| 3 | HDFC Asset Management Company Ltd. | HDFCAMC |
| 4 | L&T Technology Services Ltd. | LTTS |
| 5 | Pfizer Ltd. | PFIZER |
- GSK has been acquired by HUL recently. So, it will be removed from the index after the merger. HUL, too, at that might be removed from indices as NIFTY temporarily removes companies going through acquisitions, mergers and demergers.
- It is very positive sign for L&T Technology Services and Pfizer.
Changes in NIFTY50 Value 20
This a very attractive large cap index. The methodology of the index is quite interesting. The following company is being excluded on account of exclusion from NIFTY 50:
| Sr. No. | Company Name | Symbol |
| 1 | Hindustan Petroleum Corporation Ltd. | HINDPETRO |
The following company is being included:
| Sr. No. | Company Name | Symbol |
| 1 | JSW Steel Ltd. | JSWSTEEL |
Notes: –
- We are also not suggesting anyone to immediately go and buy the above stocks or invest in the stock markets.
- Only an analysis has been presented here.
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