Nifty 50 to 51

National Stock Exchange (NSE) announced on Monday that the index maintenance sub-committee has decided to exclude three scrips and add four scrips from the Nifty 50 index thereby taking the number of stocks on the index to 51. With this there are changes in various indices which have been announced as part of periodic review.

Nifty 50 would add Aurobindo Pharma, Bharti Infratel, Eicher Motors and Tata Motors (DVR), while Cairn India, Punjab National Bank (PNB) and Vedanta has been excluded from the Nifty 50 Index. These changes shall become effective from April 1, 2016.

As per the decision of the Index Policy Committee, equity shares with differential voting rights shall be eligible to be included in the indices as an additional security subject to the fulfilment of eligibility criteria. On account of inclusion, shares of Tata Motors are already part of Nifty, and inclusion of Tata Motors (DVR) in the Nifty 50 will take the number of securities in the index to 51. However, the total number of companies in the Nifty 50 will continue to be 50. In addition, changes have been made in several indices including financial services, infrastructure, media, metal, Nifty 200, Nifty 500. 

India Index Services and Products (IISL), a group company of the NSE has also announced new structure of the Nifty broad market indices. The existing index structure is enhanced to efficiently represent the large, mid and small market capitalisation segments of the Indian capital market. The new structure constitutes 11 indices, of which five are new indices launched by IISL.

The new indices include Nifty Midcap 150, Nifty Smallcap 250, Nifty Full Midcap 100, Nifty Full Smallcap 100 and Nifty Smallcap 50 apart from the existing six indices Nifty 50, Nifty 500, Nifty 100, Nifty 200, Nifty Next 50 and Nifty Midcap 50. The change in constituents of existing indices and publication of new indices will be effective from April 1, 2016, the exchange said.