Shree Cement gets rejigged

about 2 months ago
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Effective 30th Sept, as part of its periodic review, the Nifty -50 index of the National Stock Exchange (NSE) will see Adani Enterprises enter the benchmark index, replacing Shree Cement.

Due to this Shree Cement is in the red today, going down 1.5% to Rs.20850.65 and Adani Enterprises was up 1% at Rs/3595.

Nifty 50 gets shuffled two times in a year, in March and in July but changes are made only in Sept.

Eligibility to become part of Nifty 50 –

Every company which is a part of Nifty Next 50 and Nifty 100 is eligible for becoming a part of Nifty 50. Nifty 100 companies are eligible to become a part if they also trade in Future & Options.

The second criterion – eligible company needs to have a float-adjusted market capitalization ratio of 1.5 times the smallest company in the index.

Third - company should have 100% trading frequency in the last 6 months.

Rebalancing is a common phenomenon to adjust the index to reflect market developments better.

24097.95 (+73.70)

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