The stock of the bank has seen 83.5% correction since last February amid a forced change in management and the spiralling bad loan crisis.
Yes Bank, the distressed private sector lender, will be excluded from the Nifty50 index, said the National Stock Exchange (NSE). It will be replaced by Shree Cement, which will become a part of the benchmark index.
In a statement released by NSE, the exchange said: “The Index Maintenance Sub-Committee (IMSC) has decided to make the replacement of stocks in various indices as part of its periodic review. These changes shall become effective from March 27, 2020.”
Shares of Shree cement trade at Rs 23,912.85 a piece, the company boasts a free float market capitalisation of Rs 31,742.34 crore. On the other hand, the stock of Yes Bank ended the day 6.33% lower to close at Rs 34.80 a piece. The stock of the bank has seen 83.5% correction since last February amid a forced change in management and the spiralling bad loan crisis. Yes Bank will now become a part of the Nifty Midcap 50 Index. The other additions to the NSE Midcap 50 index include Vodafone Idea, IndiaBulls Housing Finance, L&T Finance Holdings and Ashok Leyland.
Additionally, NSE revised the criteria for inclusions and exclusions from its sectoral indices. From the Nifty 500 index, 13 companies were excluded but seven companies were included. Changes were made in indices such as Nifty Next 50, Nifty 100, Nifty Smallcap 250, Nifty Midcap 50, Nifty Financial Services, Nifty Pharma and Nifty Consumer Durables, among others. “No changes are being made to Nifty Auto, Nifty Bank, Nifty Metal, Nifty Oil & Gas, Nifty PSU Bank, Nifty Realty, Nifty Energy, Nifty Infrastructure,” said NSE in its statement.
The changes to the index were made by IMSC of NSE Indices, the subsidiary of NSE, which is responsible for providing different indices to NSE.