NewsStocksNifty 50 Reshuffles: IndiGo and Max Healthcare Join, Hero MotoCorp and IndusInd Bank ExitNifty 50 Reshuffles: IndiGo and Max Healthcare Join, Hero MotoCorp and IndusInd Bank Exit
The NSE Nifty 50 index has undergone significant changes. IndiGo and Max Healthcare have been added, while Hero MotoCorp and IndusInd Bank have been removed. This reshuffle is expected to generate over $1 billion in passive flows. State Bank of India, ITC, and Bajaj Finserv have received increased weightage. IndiGo is projected to see an inflow of $545 million, and Max Healthcare $372 million. Outflows are expected for Hero MotoCorp ($309 million) and IndusInd Bank ($217 million). Heavyweight stocks like HDFC Bank, Reliance Industries, and ICICI Bank may see outflows due to reduced weightage. Changes have also occurred in the Nifty Next 50 index.
*this image is generated using AI for illustrative purposes only.
The National Stock Exchange (NSE) Nifty 50 index, a benchmark for the Indian stock market, has undergone significant changes in its composition. This reshuffle is expected to generate over $1 billion in passive flows, marking a notable shift in the index's landscape.
Key Changes in Nifty 50
- New Entrants: IndiGo and Max Healthcare have secured their positions in the prestigious Nifty 50 index.
- Exits: Hero MotoCorp and IndusInd Bank have been removed from the index.
- Weightage Adjustments: State Bank of India, ITC, and Bajaj Finserv have received increased weightage in the index.
Projected Inflows and Outflows
The index rejig is anticipated to trigger substantial fund movements:
| Company | Projected Flow | Amount (in millions) |
|---|---|---|
| IndiGo | Inflow | 545.00 |
| Max Healthcare | Inflow | 372.00 |
| Hero MotoCorp | Outflow | 309.00 |
| IndusInd Bank | Outflow | 217.00 |
Impact on Heavyweight Stocks
Several heavyweight stocks are expected to see outflows due to reduced weightage in the index. These include:
- HDFC Bank
- Reliance Industries
- ICICI Bank
- Bharti Airtel
- Infosys
Changes in Other Indices
The reshuffle has also affected other indices, notably the Nifty Next 50:
- New Additions: Solar Industries, Engineers India, Mazagon Dock, and Hindustan Zinc have joined the Nifty Next 50.
- Exits: IndiGo, Dabur, ICICI Prudential Life, and Max Healthcare have been removed from the Nifty Next 50.
This significant reshuffling of the Nifty 50 and related indices reflects the dynamic nature of India's stock market. The changes are likely to influence investment strategies and fund allocations, particularly for index-tracking funds and ETFs.
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