NSE rejigs indices: Here’s what you need to know2 min read
The National Stock Exchange (NSE) makes changes to Nifty indices twice every year. NSE has announced rebalancing of three of its indices – Nifty 50, Bank Nifty and Nifty Next 50. Owing to this semi-annual rebalancing, certain stocks will be replaced by others and see an exit.
These changes in the index came into effect from April 1, 2022 while the adjustment took place the previous day. Here’s a look at the details of the rejig:
Nifty Next 50 rejig:
In the Nifty Next 50 Index, some interesting changes are about to happen.
Three of the stocks included in the index are ones that had their IPOs in the second half of 2021. Only the stocks that are part of Nifty Next 50 are eligible to enter Nifty 50. This change is expected to result in major cash inflows for companies that are joining the index.
Companies that will be included:
| Sr. No | Company Name | Symbol |
| 1 | FSN E-Commerce Ventures Ltd. (Nykaa) | NYKAA |
| 2 | Indian Oil Corp Ltd. | IOC |
| 3 | MindTree Ltd. | MINDTREE |
| 4 | One 97 Communications Ltd. (Paytm) | PAYTM |
| 5 | SRF Ltd. | SRF |
| 6 | Zomato Ltd. | ZOMATO |
Companies that will be excluded:
| Sr. No | Company Name | Symbol |
| 1 | Apollo Hospitals Enterprise Ltd. | APOLLOHOSP |
| 2 | Aurobindo Pharma Ltd. | AUROPHARMA |
| 3 | Hindustan Petroleum Corporation Ltd. | HINDPETRO |
| 4 | Indraprastha Gas Ltd. | IGL |
| 5 | Jindal Steel & Power Ltd. | JINDALSTEEL |
| 6 | Yes Bank Ltd. | YESBANK |
Nifty 50 and Bank Nifty rejig:
Apollo Hospitals will enter the benchmark index, replacing PSU stock Indian Oil Corporation. This is an upgrade for Apollo Hospitals as the company was part of Nifty Next 50 Index until now.
Bank of Baroda will now be part of the Bank Nifty index, while RBL will see an exit. This is expected to bring in cash inflows for Bank of Baroda and Apollo Hospitals.
Companies that will be included:
| Sr. No | Company Name | Symbol | Index |
| 1 | Apollo Hospitals Enterprise Ltd. | APOLLOHOSP | Nifty 50 |
| 2 | Bank of Baroda | BANKBARODA | Bank Nifty |
Companies that will be excluded:
| Sr. No | Company Name | Symbol | Index |
| 1 | Indian Oil Corp Ltd. | IOC | Nifty 50 |
| 2 | RBL Bank Ltd. | RBLBANK | Bank Nifty |
Changes to eligibility criteria for Index rebalancing
NSE has also made some changes in the criteria based on which rebalancing is done. Now constituents should have a minimum listing history of 1 calendar month as on the cut-off date. The earlier requirement was that of minimum listing history of 3 calendar months. This has enabled recently listed stocks to enter into the Nifty Next 50 index.
Do check out the changes on the Paytm Money app and website.
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