Apollo Hospitals gains on Nifty 50 inclusion hopes, ends nearly 3% up

Analysts tracking index composition say Apollo Hospitals will replace Indian Oil; official announcement expected by Feb third week, changes will become effective on March 31

Shares of Apollo Hospitals Enterprise, a leading multispecialty hospital chain, rose 3 per cent on Thursday on optimism that the stock will get added to the Nifty 50 index. Analysts tracking index composition say Apollo Hospitals will replace state-owned Indian Oil in the benchmark index. The official announcement in this regard is expected in the third week of February, while the changes will become effective on March 31.

As per the calculations of Abhilash Pagaria, Assistant Vice President – Research, Edelweiss Securities Apollo Hospital could see inflow of $175 million, while Indian Oil could see an outflow of $100 million on account of the rejig.

He also expects Bank of Baroda to replace RBL Bank in Nifty Bank Index. This could trigger inflow of $63 million in BoB, while RBL could see outflow of $28 million.