Indices, index provider for the National Stock Exchange (NSE), has included JSW Steel
in the benchmark Nifty
index. According to a press release on Tuesday, the steelmaker will replace pharma firm Lupin
in the benchmark Nifty, with effect from September 28.
The inclusion of JSW Steel
is expected to boost the steelmaker’s stock, given that several exchange-traded funds (ETFs) track the Nifty
index. Shares of JSW Steel
have already climbed 40 per cent in 2018 so far.
On the other hand, analysts don’t expect any sharp sell-off in Lupin
due to its exclusion from the index, as the pharma company’s weightage in the index is a paltry 0.4 per cent. After Lupin’s exit, the Nifty50 index still has three pharma companies — Cipla, Dr Reddy’s Laboratories and Sun Pharma
— who together hold weight of around 2.5 per cent.
In other changes, the newly listed Bandhan Bank, along with HDFC Standard Life, ICICI Lombard
and Biocon, have all been included in the Nifty
Next50 index. State-owned lender PNB, Emami, Power Finance Corporation
and Rural Electrification Corporation, have been excluded from Next50 index.