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Nifty 50 Rejig To Reduce Weight Of RIL, TCS, Infosys From Sept. 30

RIL's weight will be 0.11% on the Nifty 50 after the rebalancing, while TCS and Infosys will be at 0.08% and 0.06%, respectively.

<div class="paragraphs"><p>(Photo: Unsplash)</p></div>
(Photo: Unsplash)

Reliance Industries Ltd., Infosys Ltd. and Tata Consultancy Services Ltd. are set to see their weight decline in the Nifty 50 index following Adani Enterprises Ltd.'s entry, according to Edelweiss Securities Ltd.

Adani Enterprises' inclusion with a weight of 1.29% from Sept. 30 will attract inflows of Rs 33.60 crore, Edelweiss said in its report.

The billionaire Gautam Adani-controlled company replaces Shree Cement Ltd., weighing 0.38% in the index. That may cause an outflow of Rs 9.80 crore.

According to the brokerage:

  • Reliance Industries' weight is likely to decline by 0.11%, causing an outflow of Rs 2.70 crore.

  • Tata Consultancy Services' weight is expected to fall by 0.08%, causing outflows of Rs 2.20 crore.

  • Infosys, with a likely reduction of 0.06% in weight, will see an outflow of Rs 1.70 crore, Edelweiss said.

Shares of Adani Enterprises erased intraday losses on Wednesday, while Shree Cement fell 1.5%.

Ever since the semi-annual review was announced, Adani Enterprises has gained 52%, Edelweiss said, adding that the bullish momentum will continue.

Adani Enterprises has a market cap of Rs 4.04 lakh crore, while Shree Cement's market value stands at Rs 75,589 crore.

According to the Edelweiss note, the weightage of private lenders such as ICICI Bank Ltd., HDFC Bank Ltd., and Kotak Mahindra Bank Ltd. is also expected to decline post the rejig.

On the other hand, the weightage of Bharti Airtel Ltd., and HDFC Life Insurance Co. will increase in the index.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.

(Corrects an earlier version that misstated the weights of RIL, Infosys and TCS)