Stocks of ACC, Bank of Baroda, Tata Power, Tata Motors DVR drop on exclusion from Nifty 50

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Updated: August 29, 2017 11:07:32 AM

Shares of ACC, Bank of Baroda, Tata Power and Tata Motors DVR fell on Tuesday after these stocks will be removed from the broader Indian benchmark index Nifty 50 with effect from 29 September.

Shares of the second largest state run lender Bank of Baroda plunged 2.43% to the day’s low of Rs 140.75. (Image: NSE)

Shares of ACC, Bank of Baroda, Tata Power and Tata Motors DVR fell on Tuesday after these stocks will be removed from the broader Indian benchmark index Nifty 50 with effect from 29 September. In a recent reshuffling, India Index Services and Products Ltd (IISL) which is an arm of the National Stock Exchange (NSE) announced this yesterday as part of its periodic review. These four firms would be replaced by Bajaj Finance, Hindustan Petroleum Corporation Ltd, and UPL Ltd.

The stock of the cement manufacturer ACC fell 1.63% to the day’s low of Rs 1,786.05; the second largest state run lender Bank of Baroda plunged 2.43% to the day’s low of Rs 140.75. Shares of Tata group companies Tata Power and Tata Motors DVR fell 1.71% to Rs 77.5 and 1.98% to Rs 220.75 respectively.

ACC Ltd, Bank of Baroda, Tata Power and Tata Motors Ltd DVR will move out from the NSE’s benchmark Nifty 50 index from 29 September 2017. Besides Nifty 50, IISL has also decided replacement of stock on various other indices including Nifty Next 50, Nifty 500, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty Midcap 50, Nifty 200, Nift Small Cap 50 as well as sectoral indices like Nifty IT, Nifty Realty and Nifty PSU Banks.

“These changes shall become effective from September 29, 2017 (close of September 28, 2017),” IISL said in a notice.

Five companies — Bajaj Finance, Divi’s Laboratories, Hindustan Petroleum Corporation, United Breweries and UPL Ltd — would be excluded from Nifty Next 50 index which composes of 50 companies from Nifty 100 after excluding the Nifty 50 companies. These firms would be replaced by ACC Ltd, Avenue Supermarts, Bank of Baroda, MRF Ltd and Tata Power.

Moreover, as many 25 firms including Amtek Auto, Reliance Capital, and Reliance Industrial Infrastructure would be shifted out from Nifty 500. Avenue Supermarts, BSE Ltd, and Jindal Stainless are among the 25 companies which would be taking their place in this index.

Meanwhile, Divi’s Laboratories and United Breweries would be replaced by Avenue Supermarts and MRF Ltd on the Nifty 100. As many as 10 companies such as Reliance Capital would be excluded from Nifty Midcap 150. The index would include United Breweries and nine others from September 29. While 29 entities will be replaced under Nifty Small Cap 250, Nifty Mid Small Cap 400 will see a replacement of 26 firms. Among other, ten companies would be replaced under Nifty Small Cap 50 index and Nifty Midcap 50 index will see a replacement of five companies.

Justdial would be replaced by Infibeam Incorporation under Nifty IT index, while Hindustan Copper and Jindal Stainless (Hisar) would take the place of Orissa Min Dev Co Ltd and Ratnamani Metals & Tubes Ltd. Nifty PSU Bank would see the entry of Indian Bank, while RBL Bank would be included in Nifty Private Bank index.

Indian stock markets fell on Tuesday led by the slump in the shares of NTPC after the government announced that it will sell 5% stake in the country’s largest power producer NTPC at Rs 168 per share to raise about Rs 7,000 crore. The sentiments were also brought down by the weaker Asian markets and US stock futures which tumbled in the early trade today after North Korea fired a missile over northern Japan, fuelling worries of fresh tension between Washington and Pyongyang. Within minutes of trading markets extended losses with the benchmark Sensex sliding over 250 points to the day’s low of 31,485.3.

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