Back NSE indices rejig: Shriram Finance to see $200 million inflows, Jio Finance to get $89 million

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Back NSE indices rejig: Shriram Finance to see $200 million inflows, Jio Finance to get $89 million

CA Abhay Varn

29/Feb/2024

Shriram Finance shares are expected to see a net inflow of over $200 million upon its inclusion in the Nifty 50 index, replacing UPL, according to estimates by Nuvama Institutional Equities.

This amount is equivalent to a 6-day volume impact and 7.1 million shares of Shriram Finance

Shriram Finance shares are expected to see a net inflow of over $200 million upon its inclusion in the Nifty 50 index, replacing UPL, according to estimates by Nuvama Institutional Equities.

This amount is equivalent to a 6-day volume impact and 7.1 million shares of Shriram Finance

On the other hand, UPL will witness an outflow of $100 million, equivalent to a 3.5-day volume impact and 17.5 million shares, said the brokerage firm.

In its semi-annual review of broad market indices, NSE Indices said that Shriram Finance has been added to the Nifty 50 index, replacing UPL Ltd, due to its highest 6-month average free-float market capitalization within the eligible universe.

These changes shall become effective from March 28, 2024 (close of March 27, 2024).

The stocks being added to the Nifty Next 50 index include Jio Financial Services, Adani Power, IRFC, Power Finance Corporation (PFC), and REC Ltd.

As per estimates, Jio Financial Services may see inflows of $89 million, PFC to see $48 million inflows, Adani Power and REC may witness $45 million worth of inflows each, and IRFC to get $23 million inflows.

These stocks will replace Shriram Finance, PI Industries, Procter & Gamble Hygiene & Health Care, Muthoot Finance, and Adani Wilmar in the Nifty Next 50 index.

The bourse has also made a significant reshuffling within the Nifty 500 index, with 34 stocks being added and removed. Other indices such as Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, and Nifty Midcap Select also underwent significant changes.

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Back NSE indices rejig: Shriram Finance to see $200 million inflows, Jio Finance to get $89 million

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