Club Nifty set to get many new faces in Aug rejig

Mumbai: The semi-annual review of the components of the Nifty by exchanges could lead to inclusion of more financials, say analysts. Edelweiss said two of the country’s largest life insurance firms, HDFC Life Insurance and SBI Life Insurance, could make their way into the main index in the upcoming reshuffle. Divi’s Laboratories and consumer major Dabur India are the others that stand a good chance of making it into the Nifty, the brokerage said. Vedanta, Zee Entertainment, Bharti Infratel and GAIL are likely to be excluded, the brokerage said.Exchanges could announce the index rebalancing in the last week of August and the changes would be effective later in September. If included, HDFC Life Insurance could attract flows of around Rs 750 crore ($100 million) while SBI Life and Divi’s could get about Rs 550 crore each.While shares of HDFC Life have gained over 15 per cent in the last one year, SBI Life and Divi’s have rallied 8 per cent and 45 per cent, respectively, during this period. Shares of Dabur have risen 16 per cent.A key criteria for inclusion into the Nifty is that the stock should be traded in the futures and options segment, and all four of them are part of the equity derivatives segment.76701354The stocks that are likely to be excluded have been underperformers in recent months. Vedanta’s promoters have opted for delisting the stock from domestic bourses after it fell over 40 per cent from its yearly high. Zee Entertainment has lost over 50 per cent of its market capitalisation in the last one year after promoters sold shares in the company to repay their debt.

from Economic Times https://ift.tt/2ZjfFPC