Shares of Shriram Finance are expected to see a net inflow of over $200 million following its inclusion in the Nifty 50 index, replacing UPL, according to estimates by Nuvama Institutional Equities.
This amount is equivalent to 6 days volume effect and 7.1 million shares of Shriram Finance.
On the other hand, UPL will witness an outflow of $100 million, equivalent to a 3.5-day volume effect and 17.5 million shares, the brokerage firm said.
Read here: Shriram Finance to be included in Nifty50, UPL excluded – check full list here
In its semi-annual review of broad market indices, NSE Indices said Shriram Finance was added to the Nifty 50 index, replacing UPL Ltd, due to its highest 6-month average free float market capitalization within the eligible universe.
These changes will take effect from March 28, 2024 (end March 27, 2024).
The stocks added in the Nifty Next 50 index include Jio Financial Services, Adani Power, Indian Railway Finance Corporation (IRFC), Power Finance Corporation (PFC) and REC Ltd.
According to estimates, Jio Financial Services may see inflows of $89 million, PFC to see $48 million inflows, Adani Power and REC may witness $45 million worth of inflows each and IRFC to receive $23 million inflows.
Read also: Shriram Finance share price gains over 4% on Nifty 50 inclusion; Jio Finance up 3%, UPL shares down 1%
These stocks will replace Shriram Finance, PI Industries, Procter & Gamble Hygiene & Health Care, Muthoot Finance and Adani Wilmar in the Nifty Next 50 index.
The stock market also saw a major shake-up within the Nifty 500 index, with 34 stocks being added and removed. Other indices like Nifty 100, Nifty Midcap 150, Nifty Smallcap 250 and Nifty Midcap Select have also seen significant changes.
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Published: 29 Feb 2024, 10:15 IST