Mumbai: Bharti Infratel, Vedanta, Zee Entertainment, Tata Motors and GAIL India are likely to be excluded from Nifty in the upcoming index rebalancing in September, said brokerage ICICIdirect. Avenue Supermarts, Divi’s Laboratories, HDFC Life, Dabur, SBI Life and Pidilite are the likely candidates for inclusion in the index, the brokerage said.This could be one of the biggest rebalancing in the index’s history. Several stocks have become eligible after the sharp fall in the index from its highs. India’s stock indices are still down over 25 per cent from their all-time highs hit in January despite the sharp recovery seen this month. In a calendar year, a maximum of 10 per cent of the index size can be changed. In this year’s earlier rebalancing, Yes Bank was excluded from the index and replaced by Shree Cement.Bharti Infratel, Vedanta, Zee Entertainment, Tata Motors and GAIL India are the stocks with the lowest free-float market capitalisation and their average free-float m-cap is likely to remain low, according to ICICIdirect.The brokerage believes at least three out of these five stocks could be replaced in the next rebalancing.75397885Among the stocks that are likely to be included, Avenue Supermarts is not part of the futures & options (F&O) segment. The stock cannot be added in the Nifty if it is not a part of the F&O segment. Despite being the largest stock among the likely replacements, it will not be part of the Nifty, said ICICIdirect.“In such a scenario, Divi’s Laboratories, HDFC Life, Dabur and SBI Life could be part of the Nifty... The next close contender is Pidilite Industries, which could also be a part, albeit with a lower probability, if it outperforms the rest in the coming months,” it said.
from Economic Times https://ift.tt/2VYiunH
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