The frontline Nifty index
is expected to shed some volatility after the latest reshuffle. In September, Nestle India replaced Indiabulls Housing Finance
in the 50-share index and next month, Shree Cement will come in place of YES Bank.
Shares of both Indiabulls Housing and YES Bank
have been volatile on the bourses, while Nestle India and Shree Cement aren’t. This is not just because of their stable businesses but also on account of high-denomination of their stock price. Shares of Nestle India currently quote around Rs 16,500, while those of Shree Cement are at Rs 24,400. In absolute terms, the two stocks are the most expensive on a per share basis in the Nifty index, which is widely tracked by exchange traded funds.