Good news for Zomato, Paytm and Nykaa, will be included in Next Nifty 50 Index

 

There is good news for Zomato, Paytm, Nykaa. Recently listed stocks Zomato, One97 Communications (Paytm), FSN E-Commerce Ventures (Nykaa) are among the stocks which will be included in Nifty Next 50 Index from March 31, 2022. This way was opened for these companies after the amendment in the norms announced by the stock exchange. The shares of these companies were listed last year. The shares of these companies have disappointed investors since the listing.

 what are the new rules

 The Index Maintenance Sub-Committee - Equity (IMSC) of NSE Index Limited, in its periodic review, has decided to revise the eligibility criteria of Nifty Equity Index and replacement of stocks in various indices. These changes will be effective from March 31, 2022, NSE announced in a circular on Thursday. The committee has decided to change the eligibility criteria for Nifty Equity Indices. As per the new change in methodology, constituents should have a minimum listing history of 1 calendar month as on the cut-off date as compared to 3 months in earlier norms. 

Minimum listing history of 1 calendar month instead of 3 months

 Abhilash Pagaria, Head, Alternatives Research, Edelweiss Securities says that constituents should now have a minimum listing history of 1 calendar month instead of the earlier requirement of 3 months cut-off history. This has paved the way for stocks such as Nykaa, Paytm, Policy Bazaar and LatentView to list after October 2021. The new norms of passive tracking perspective have helped Nykaa and Paytm to be included in Nifty Next 50.

 which stocks will be out

 Six stocks - Nykaa, Indian Oil Corporation (IOC), Mindtree Ltd, Paytm, SRF Ltd and Zomato Ltd will replace Apollo Hospitals Enterprise, Aurobindo Pharma HPCL, IGL, Jindal Steel & Power and Yes Bank from the Nifty Next 50 index. In addition, Apollo Hospitals will replace IOC in the Nifty 50 index while Bank of Baroda will be included within Nifty Bank as RBL Bank is excluded from the banking index.

 what difference will it make

 The brokerage said, “Nifty index rebalance has come in line with Edelweiss predictions. In Nifty 50 - Apollo Hospitals will see an inflow of $143 billion while IndianOil will be delisted and there will be an outflow of $91 million. Within Nifty Bank, Bank of Baroda will see a profit of $53 million while RBL will see an outflow of $23 million.