Key Index changes effective from 30th December

Key index changes from 30th December
Key index changes from 30th December

Indian Market
by 5paisa Research Team Last Updated: 2022-12-27T14:51:05+05:30

The Index Maintenance Sub-Committee (Equity) of NSE Indices Limited continuously review the constituents of the various indices and takes an informed view on any changes required to the components. In its latest Index Review meeting, the committee has decided to make the two important changes in the case of stocks on account of scheme of arrangement for demerger. These changes would be effective from 30th December 2022, which is when the January 2023 expiry will commence after the close of December 2022 expiry on 29th.

The following stocks would be moved out of various indices due to scheme of demerger.

  1. Under the approved Scheme of arrangement of Saregama India Ltd, it will demerge its entire distribution business relating to sale of all its physical products into Digi-drive Distributors Ltd. This scheme of arrangement has already been approved by the shareholders of Saregama India Ltd.
     

  2. Under the approved scheme of arrangement of Sundaram-Clayton Ltd; as part of the demerger arrangement, the entire business of manufacturing of non-ferrous gravity and pressure die castings would be hived off into Sundaram-Clayton DCD Private Limited. This scheme of arrangement has also been approved by the equity shareholders of Sundaram-Clayton Ltd.

How these demerger updates will impact various indices

The following are some of the key changes that will occur in various NSE indices on account of the demerger of these companies.

  • The Nifty 500 index will see Saregama India Ltd being excluded from the index. In its place, Rainbow Children Medicare Ltd will be introduced into the index. The above replacement would also be automatically applicable to Nifty 500 Multi-cap 50:25:25 index.
     

  • The Nifty Small Cap 250 index will also see Saregama India Ltd being excluded from the index. In its place, Rainbow Children Medicare Ltd will be introduced into the index.
     

  • The Nifty Mid-Small Cap 400 index will also see Saregama India Ltd being excluded from the index. In its place, Rainbow Children Medicare Ltd will be introduced into the index.
     

  • The Nifty Micro-Cap 250 index will see 2 changes taking place in this index. Rainbow Children Medicare Ltd and Sundaram Clayton Ltd are being excluded from the index. In its place, PDS Ltd and Star Cement Ltd will be introduced into the index.
     

  • The Nifty Total Market index will also see 2 changes taking place in this index. Saregama India Ltd and Sundaram Clayton Ltd are being excluded from the index. In its place, PDS Ltd and Star Cement Ltd will be introduced into the index.
     

  • The Nifty Media index will also see Saregama India Ltd being excluded from the index. In its place, Navneet Education Ltd will be introduced into the index.

     

Apart from these, the Nifty 500 Shariah index will also under few changes. Allcargo Logistics and Shipping Corporation of India will be dropped from this index. In its place, BEML Ltd will be introduced.


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