JSW Steel to replace pharma firm Lupin in Nifty 50 from September 28

NSE 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.