As part of its periodic review, NSE group company IISL has replaced Cairn India, Punjab National Bank and Vedanta with Aurobindo Pharma, Bharti Infratel, Eicher Motors and Tata Motors DVR as part of the Nifty50 index. Equity securities with differential voting rights, or DVRs, would now be eligible for inclusion in an index subject to certain conditions.
IISL has also announced a new structure of Nifty broad market indices, including five new indices Nifty Midcap 150, Nifty Smallcap 250, Nifty Full Midcap 100, Nifty Smallcap 50 and Nifty Full Smallcap 100.
The Nifty 500 index will comprise of top 500 companies based on full market capitalisation meeting the eligibility criteria.
The constituents of Nifty 500 index are then classified based on full market capitalisation into 3 indices namely Nifty 100, Nifty Midcap 150 and Nifty Smallcap 250. The constituents of these indices are classified into sub-indices based on liquidity and market capitalisation criteria.
"The new structure ensures that a company will be classified into only one of the segments - large, mid and small market capitalisation and provide better reflection of the performance of the respective segments. With the launch of Nifty Smallcap 50 index, IISL will have 50 stock index in each of the three segments. The launch of new indices and the index restructuring will facilitate introduction of investment products." said Mukesh Agarwal, CEO, IISL.