Adani Wilmar, IRCTC, HAL among stocks that may get included in Nifty Next 50 Index


Edelweiss Alternative & Quantitative Research has carried out a pre-emptive analysis of the Semi-Annual Index (SAIR) September 2022 Rejig for Nifty indices. The Index provider will officially announce the list in the second half of August 2022.

As per the brokerage and research firm, probable inclusions in Nifty Next 50 index may include Adani Wilmer (AWLTD), Indian Railway Catering and Tourism Corporation (IRCTC Ltd), Motherson, Bharat Electronics Ltd (BEL), and Hindustan Aeronautics Ltd (HAL) .

Whereas, the probable exclusions from the index, as per Edelweiss, could be Lupin Ltd (LPC), Jubilant Foodworks (JUBI); Zydus Lifesciences (ZYDUSLIF), Punjab National Bank (PNB), and Steel Authority of India (SAIL).

Meanwhile, according to Edelweiss’ preliminary analysis, Adani Enterprises holds a high chance to dislodge Shree Cements in the Nifty 50 index. “Adani Enterprises has moved up appx 42% (CMP- INR 3,013 vs 30 May price- INR 2,130) and SRCM is down by 4% (CMP- INR 21,575 and 30 May price- INR 22,400). As we have been highlighting the momentum will continue till the rebalance date as both the stocks have limited free float,” it said.

The changes will take into account the average free float (FF) market capitalization for the period Feb to July 2022. Smallest stock in the Nifty 50 based on free float (FF) market cap is Shree Cement, making it the top contender for exclusion. Whereas, Adani Enterprises qualifies as its 6- month free float (FF) Mcap is >1.5x along with stock included in F&O list, as per brokerage firm ICICI Securities.

The upcoming semi-annual changes to the Nifty 50 index will be announced mostly next week and the changes shall come into effect from September 30, 2022.

The most important criteria for Nifty 50 Inclusion is that the stock should compulsorily be part of the derivatives segment. For instance, average free float market cap of Avenue Supermarts (DMART), Adani Green Energy (ADANIGR) and Adani Transmission (ADANIT) is significantly higher than most of the existing Nifty 50 constituents, but the stock has not been included in the index for the past few reviews as they are not a part of the F&O segment.

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