NSE Revises Stock Selection Criteria for Nifty Indices

Change in index

Last Updated: Dec 10, 2022 - 12:55 pm 55.2k Views
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On 23 August, the NSE Index committee made some significant changes to the criteria and the composition of the various capitalization indices and sectoral indices. There are two very significant shifts that the Index Committee has made in the index criteria, effective 30-Sep.

The first big shift is with respect to the eligibility for inclusion of REITs and INVITs in the indices. Currently, only equity shares are eligible to be included in the index. Going ahead, even REITs and INVITs have been declared as eligible securities to be included in indices. This will bring a lot of global passive funds to invest in REITs and INVITs.

The second big change is to give a better representation to the pharma sector in the sectoral index. Currently, only the top-10 pharma stocks are considered for inclusion in the pharma index based on 6-month average free-float capitalization. That is now being modified to 20 pharma stocks to give a wider choice for inclusion in the pharma index.

Major changes in key indices

There will be no changes in the Nifty 50 Index composition as part of this semi-annual review. However, other indices are likely to see shifts as captured in the table.
 

NSE Index
Category

Number of
stocks changed

Nifty Next  50

05

Nifty 500

23

Nifty 100

05

Nifty Midcap 150

20

Nifty Small Cap 250

32

Nifty Midcap 50

10

Nifty Midcap 100

10

Nifty Small Cap 50

16

Nifty Small Cap 100

24

Nifty 200

06

Nifty Large-Midcap 250

15

Nifty Mid-Small-cap 400

28

Nifty Microcap 250

40

Nifty FMCG

01

Nifty Healthcare

04

Nifty IT

01

Nifty Media

03

 

For a detailed list you can visit the NSE website at the following: https://www.niftyindices.com/Press_Release/ind_prs23082021.pdf

All the above changes will be effective from September 30th, 2021.

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