The NSE Indices Index Maintenance Sub-Committee – Equity has voted to alter the eligibility criterion for NIFTY equity indices.

From March 31, 2022, newly listed equities Zomato, One97 Communications (Paytm), and FSN E-Commerce Ventures (Nykaa) will be included in the Nifty Next 50 index. The stock exchange’s announcement of a change in criteria has allowed these stocks, which were listed last year, to join the index.

As part of its periodic assessment, the Index Maintenance Sub-Committee – Equity (IMSC) of NSE Indices Limited has agreed to amend the eligibility criteria for Nifty equity indices and replace stocks in various indices, as indicated below. These modifications will take effect on March 31, 2022, according to a circular issued by the NSE on Thursday.

The committee has decided to make modifications to the NIFTY equity indexes’ eligibility requirements. According to the new technique, constituents must have a minimum listing history of one calendar month as of the cut-off date, as opposed to three months previously.

“Instead of the previous criterion of three months, constituents must now have a minimum listing history of one calendar month as of the cut-off date.” Stocks including Nykaa, Paytm, Policy Bazaar, and Latent View were able to list after October 2021 as a result of this. According to Abhilash Pagaria, Head, Alternatives Research, Edelweiss Securities, “new criterion has helped Nykaa and Paytm get included in Nifty Next 50 from a passive monitoring viewpoint.”

Six stocks will replace Apollo Hospitals Enterprise, Aurobindo Pharma HPCL, IGL, Jindal Steel & Power, and Yes Bank from the Nifty Next 50 index: Nykaa, Indian Oil Corporation (IOC), MindTree Ltd, Paytm, SRF Ltd, and Zomato Ltd.

Furthermore, Apollo Hospitals will replace IOC in the Nifty 50 index, while Bank of Baroda will be included in the Nifty Bank index as RBL Bank is removed from the banking index.

“The rebalancing of the Nifty Indices has followed Edelweiss’ projections. In the Nifty 50, Apollo Hospital will see a $143 billion inflow, while Indian Oil will see a $91 million outflow. Within Nifty Bank, Bank of Baroda would gain $53 million, while RBL will lose $23 million, according to the brokerage.