Announcements

NSE Announces Changes In Index Components

March 9, 2021

NSE Announces Changes In Index Components

In a recent announcement, the National Stock Exchange (NSE) said that Tata Consumer Products will replace state-owned Gail India in the benchmark Nifty 50 index. The change will take effect on March 31. Along with that, the announcement also covered the movement of stocks in other NSE indices.

Tata Consumer Products will enter the blue-chip benchmark index for the first time in its history, making it the fifth Tata Group company to become part of the index. Currently, Tata Consultancy Services, Tata Motors, Titan Company, and Tata Steel are part of the Nifty50 index.

For GAIL India, the exclusion brings to an end the stock’s nearly 18-year stint in India’s premier stock market index. The stock of the company was reportedly first included in the Nifty50 in May 2003.

Tata Consumer, formerly known as Tata Global Beverages, will join FMCG peers such as Hindustan Unilever, Nestle India, and Britannia in the widely-tracked Nifty 50 index.

Tata Consumer Products is a multinational consumer goods company and a subsidiary of Tata Group. It reported a 25.26% rise in consolidated net profit to Rs. 237.03 crore for the third quarter ended December 2020, on the back of higher sales in branded business.

NSE also said that seven stocks including Bank of Baroda, Container Corporation of India (Concor), General Insurance Corporation of India, Hindustan Zinc, Oracle Financial Services Software, Power Finance Corporation, and Tata Consumer Products will be excluded from the Nifty Next 50 index. Whereas Adani Enterprises, Apollo Hospitals Enterprise, GAIL (India) Ltd, Jubilant Foodworks, MRF, Vedanta, and YES BANK will be included in the index.

Bombay Dyeing & Manufacturing Co. Ltd., CARE Ratings Ltd, Chennai Petroleum Corporation Ltd, D.B.Corp Ltd, ESAB India Ltd, Gujarat Mineral Development Corporation Ltd, Hathway Cable & Datacom Ltd, Heritage Foods Ltd are some of the stocks that will be excluded from NIFTY 500 Index.

Angel Broking Ltd, Computer Age Management Services Ltd (CAMS), Happiest Minds Technologies Ltd, KPIT Technologies Ltd, Max Healthcare Institute Ltd, Mazagoan Dock Shipbuilders Ltd, Prince Pipes and Fittings Ltd, Rossari Biotech Ltd, and Route Mobile Ltd are some of the stocks that will be included in the NIFTY 500 Index.

The National Stock Exchange (NSE) revised the index maintenance guidelines, criteria, and methodology. The changes will be effective from 31 March 2021.