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More than skin-deep: Nifty Next 50 complexion to get a shade of difference

Removal of non-F&O stocks could lead to addition/subtraction of 11 stocks, triggering a Rs 5,000-crore churn

A man walks past the NSE (National Stock Exchange) building in Mumbai on December 27, 2016. (Photo: Reuters)
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Samie Modak Mumbai

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The National Stock Exchange (NSE) Nifty Next 50 Index could undergo large-scale changes if the proposed tweaks to its computation methodology get implemented.

In a discussion paper floated last week, NSE Indices, which owns and manages a portfolio of over 350 indices under the Nifty brand, proposed that only stocks that are traded in the futures and options (F&O) segment can be part of the index. Currently, as many as 11 non-F&O stocks are part of the Nifty Next 50 Index, which, as the name suggests, represents the next rung of large and liquid securities after the Nifty50.

The Nifty50

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