Shriram Finance Surges as it Joins Nifty 50

29 Feb 2024 , 11:18 AM

Shriram Finance shares surge by 4% in early trading on February 29 after inclusion in the Nifty 50 post index rejig.

UPL Ltd, the replaced stock, declines by 2%. NSE announces Shriram Finance’s inclusion in Nifty 50 due to the highest 6-month average free-float market capitalization within the eligible universe, replacing UPL. Changes effective from March 28.

Shriram Finance traded at ₹2,402.80, while UPL Ltd was at ₹471.05 in the morning trade on NSE. Shriram Finance’s shares surged over 96% in the past year, attributed to strong financial performance, while UPL’s shares slumped around 35% in the same period.

UPL was among worst performers on the Nifty 50 last year due to debt concerns and downturn in agri-input industry.

Shriram Group, an Indian conglomerate headquartered in Chennai, founded on April 5, 1974, by R. Thyagarajan, AVS Raja, and T. Jayaraman. Started with chit funds business, later expanded into lending and insurance.

Market data from stock exchanges highlights a significant contrast in market capitalization between the two entities. Shriram Finance boasts a market capitalization of Rs 89,766.45 crore, whereas UPL holds a market capitalization of Rs 36,074 crore, indicating the divergent performance of the two companies in today’s trading session.

As of 12:21 pm, Shriram Finance shares were trading 2.21% higher at ₹2,401, while UPL witnessed a decline of 0.6%, trading at ₹472.90.

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