Nifty: Apollo Hospitals or Info Edge likely to replace IOC in Nifty: Edelweiss Research

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Mumbai: or (India) is likely to be included into the Nifty in the next index rebalancing by the National Stock Exchange, according to Edelweiss Research. Indian Oil Corporation () could be dropped from the benchmark index, the brokerage said.

“As per our calculations using the four months of existing free-float market cap and hypothetical assumption of future seven weeks market cap, we believe that Apollo Hospitals holds slightly higher chance than Info Edge. Currently, both the stocks are 1.5 times above Indian Oil’s free-float market cap,” according to a note by Edelweiss Alternate Research.

NSE will announce its semi-annual index rejig in the second half of February 2022, and the changes will be effective from April 1, 2022.
Edelweiss said a run-up of over 12% in IOC’s stock price in the next three weeks could save it from the index exclusion.

The most important criteria for Nifty inclusion is that the stock should be part of the equity derivatives segment. Avenue Supermarts’ average free-float market cap is significantly higher than several other index constituents. However, the stock is still not in the Nifty 50 index as it’s not part of the F&O segment.

“If Avenue Supermarts gets included in derivatives segment till the announcement date, then it will for sure be a Nifty 50 member,” said Edelweiss.

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