Gautam Adani-led Adani Enterprises will become part of Nifty 50 from Friday, 30 September, in NSE’s upcoming semi-annual index rejig. Adani Enterprises will replace Shree Cement from the 50-stock index. This is the second Adani stock to be included in the Nifty 50 index after Adani Ports and Special Economic Zone. Apart from Nifty 50, changes have been announced in Nifty Next 50, and Nifty IT. Adani group has seven established listed entities, including Adani Green Energy, Adani Power, Adani Total Gas, Adani Transmission, Adani Ports and Special Economic Zone, Adani Wilmar, and Adani Enterprises.
According to earlier estimates by Edelweiss Alternative and Quantitative Research, Adani Enterprises’ inclusion into Nifty 50 index would have led to inflows of $285 million into the stock. However, according to the research firm’s latest review report dated 28 September, this inclusion will lead to inflows of $336 million. So far this year, Adani Enterprises’ share price has more than doubled, zooming 107.4 per cent to now trade at Rs 3,561 per share. Shree Cements’ stock price, meanwhile, is down 23 per cent during the same period.
In the last 6 months, Adani Enterprises’ share price is up 86.5 per cent, on the other hand, Shree Cements stock is down 10 per cent and is trading at a price of Rs 20,963.5 per share. “We at Edelweiss Alternative & Quantitative Research have analysed the flow impact led by rebalance and recapping of stocks in key indices (Nifty 50 , Nifty Bank and CPSE Index) and inclusion/exclusion in Nifty Next 50 and Nifty IT,” the report said.
IRCTC, Adani Total Gas, others enter Nifty Next 50
Nifty Next 50 index will see the entry of marquee names such as Bharat Electronics, Shree Cements, Adani Total Gas, Hindustan Aeronautics (HAL), IRCTC, Mphasis, and Motherson Sumi Wiring India. Moving out of the junior Nifty index will be Adani Enterprises, Dominos operator Jubilant FoodWorks, MindTree, Lupin, Punjab National Bank (PNB), SAIL, and Zydus Lifesciences.
Persistent Systems replaces Mindtree in Nifty IT
For the Nifty IT index, Edelweiss noted that Persistent Systems’ stock will enter the index replacing Mindtree. Inflows towards Persistent Systems (PSYS) will be around $16 million, and outflows from Mindtree would be around $23 million. However, no changes to the Nifty Bank index and Nifty CPSE have been made.