Four Adani group companies’ shares have been excluded from the Nifty Alpha 50 index as the National Stock Exchange of India (NSE) rejigged its indices. Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas have been excluded from the Nifty Alpha 50 index, along with ten other stocks. The rejig and replacement is done on a quarterly basis, following a review of the strategy indices. The Adani stocks will exit the NSE index with effect from 31 March.
The Nifty Alpha 50 index is a 50 stock index that selects stocks with high alphas, judging each security based on its liquidity and market capitalization. This, according to the NSE, will make them investable and replicable. A total of 14 stocks have been excluded from the Nifty Alpha 50 index during this rejig. The others are Aditya Birla Fashion and Retail, Angel One, Elgi Equipments, Fine Organic Industries, Gujarat Narmada Valley Fertilizers and Chemicals, KEI Industries, Page Industries, SRF, Suzlon Energy, and Tata Elxsi.
These stocks will be replaced by Aditya Birla Capital, Apollo Tyres, Bank of India, Bharat Heavy Electricals, Britannia Industries, IDFC First Bank, Jindal Steel & Power, L&T Finance Holdings, Mahindra & Mahindra Financial Services, MRF, Power Finance Corporation, Punjab National Bank, Siemens, and Zydus Lifesciences, which will be included in the Nifty Alpha 50 index.
Along with the Nifty Alpha 50 index, the four Adani group shares, as well as Adani Ports
Adani group stocks have been under pressure since January 24, after a US-based short seller Hindenburg’s report accused the conglomerate of fraud and stock manipulation. However, over the few past sessions, the Adani group shares have seen a sharp recovery. From 28 February to 6 March, Adani Enterprises has gained over 45%, rising 5% in trade on Monday amid positive momentum in the broader markets.
Other of the group shares hit their upper circuit as well. Shares of Adani Power, Adani Transmission, Adani Energy, Adani Total Gas and Adani Wilmar jumped 5% each and their closing levels touched the respective upper price bands. The jump in Adani group stocks is a result of global equity fund GQG’s Rs 15,466 crore investment in four group entities via block deals last week, saying the group has “fantastic assets”.