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Adani Enterprises seen replacing Shree Cement in Nifty 50 index

Analysts say AEL meets all requirements to make it to the benchmark index. Inclusion will be a big boost for the stock, resulting in passive inflows of $183 million

Adani Enterprises | Adani Enterprises Ltd | Nifty 50

BS Reporter  |  Mumbai 


(AEL), the flagship company of the Adani Group, could dislodge Shree Cements in the index, analysts tracking composition said. The change is likely during Nifty’s September 2022 rebalancing exercise.

They say AEL at present meets all the requirements to make it to the benchmark index. If AEL is indeed added to the index, it will be a big boost for the stock as it will result in passive inflows of $183 million, as per Edelweiss estimates.

Brian Freitas of Periscope Analytics, who publishes on Smartkarma, said funds that track Nifty index will have to buy over 5 per cent of AEL free float if the stock gets added to the index. Currently, and Hero Motocorp are the lowest-ranked Nifty constituents.

Nifty’s next rebalancing announcement is usually done during the second half of August, while the cut-off date to compute the changes in index components is July 29.

Any changes in share prices between now and July-end, could alter the equations.

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First Published: Mon, May 30 2022. 19:11 IST