Vedanta to pave way for HDFC Life in Nifty. Time to buy insurance stocks?

ICICI Securities expects that in the semi-annual change in the Nifty50 constituents, SBI Life Insurance will enter the index, replacing Zee Entertainment (ZEEL).

On Thursday, in an out-of-turn announcement, the National Stock Exchange (NSE) announced that life insurance player HDFC Life will replace the outgoing Vedanta Ltd in the Nifty50 index from July 31, as the latter got shareholders' approval on June 25 for delisting. Meanwhile, analysts at ICICI Securities expect that in the semi-annual change in the Nifty50 constituents to be announced by August-end, SBI Life Insurance will enter the index, replacing Zee Entertainment (ZEEL).  

These changes, according to the brokerage firm, will improve the earnings growth profile of Nifty50, and also increase the weight of non-lending financial services stocks in the