Churn in constituents to have negligible impact on Nifty's fundamentals

The churn will lead to a minor deterioration in Nifty 50 fundamentals, suggest Ravi Muthukrishnan and Pankaj Chhaochharia of Elara Capital in a recent report.

Grasim Industries, Titan, and Bajaj Finserv will enter the Nifty50 index from April 2, replacing Ambuja Cement, Aurobindo Pharma, and Bosch.
 
Following the rejig, weight of the consumer discretionary sector on the index will increase by 82 basis points (bps), while that of non-banking finance companies (NBFCs) will go up by 61 bps and cement by 60 bps, analysts said.
 
On the other hand, the exits will lead to a fall of 55 bps, 47 bps and 34 bps, respectively, in the weight of auto, pharma and private banks. The number of financials will increase to 11 and