Among the 5 stocks removed from the Nifty Next50 index are Nykaa and HDFC AMC

18 Aug 2023 , 02:52 AM

In the most recent revision of several NSE indices, a number of stocks, including Nykaa and HDFC AMC, were removed from the Nifty Next50 index. The reference Nifty, however, remained unchanged.

The index maintenance subcommittee (Equity) of NSE Indices made the amendments, which will take effect on September 29.

The Nifty Next50 index also didn’t include Indus Towers, Page Industries, and ACC, but it did include PNB, Shriram Finance, Trent, TVS Motor, and Zydus Life.

After taking the Nifty 50 stocks out, the Nifty Next 50 index now includes the remaining 50 stocks from the Nifty 100 index.

Avas Financiers, Affle (India), Alkyl Amines, Clean, and a number of other companies weren’t included in the Nifty Midcap 150, while ACC, Nykaa, the Bank of Maharashtra, and HDFC AMC were.

In the meantime, Triveni Engineering, TV18 Broadcast, Rail Vikas Nigam Ltd, and Bank of Maharashtra will leave the Nifty Smallcap 100 index. On the other hand, the index now includes CEAT, CIE Automotive, Equitas SFB, JBM Auto, and a few additional companies.

All of the Nifty indices are managed by NSE Indices, a division of NSE, and are based on index methodology that are pre-announced, transparent, objective, non-discretionary, and rule-based.

The price-to-book value (P/B) for indexes will be determined based on the net worth of each index member at the consolidated level in the annual financials, according to NSE, in addition to the revision.

Currently, the networth disclosed by index constituents in the standalone financial statements is taken into account when calculating the P/B for indices.

Stocks are periodically included and excluded from the various Nifty indices based on objective, non-discretionary, and rule-based index methodology. Depending on the index’s goal and the underlying market it tries to represent, each Nifty index may have a different specific methodology.

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