Introduction
The Indian stock markets are among the oldest in Asia and have attracted millions of investors over the decades. However, the pace of investing and the number of new investors and traders joining the markets today is unprecedented. For such high volumes of trades and high volatility of the markets, there was an acute need for proper regulations and a code of conduct to be followed by each participant from the very start. Viewing this need, the Government of India had set up SEBI and other regulatory bodies to govern the investing and trading of stocks and other related instruments on the stock exchanges. These regulatory bodies also decide the mechanism or the basis for which stocks can be listed on the exchanges or may be removed later.
Recently, it was announced that the NSE would be undergoing an alteration of the available stocks on their various indices. Below is the list of incoming and outgoing stocks and the broad mechanism followed by the stock exchange to readjust their stock lists.
How and why are stocks on NSE restructured?
The list of stocks that are available on various indices on the National Stock Exchange (NSE) is based on the underlying methodology for each such index. As per the policy of SEBI, this list is to be reviewed every 6 months. The latest revision is scheduled on September 30. The conditions or situations that warrant the change in the list of stocks are detailed below.
- When the constituent on the index is moved to BZ/SZ category
- When a constituent on the index undergoes any changes in terms of the stock split, merger, spin-off, delisting, capital restructuring, etc., or any other case that may lead to changes in the stock prices.
- When the removal of the stock from the respective indices is in the interests of the investors at large or the stakeholders which will be determined by the Index Maintenance Sub-Committee (Equity) in any of the following cases,
- If there are adverse regulatory findings, or,
- Any order or governance-related issues
- In case when the trading permission for a particular constituent is withdrawn from the F&O segment (provided being able to be traded on the said segment is the primary condition for listing)
- When the security has been suspended on account of any reason for trading at the NSE from the Capital Market or the SME Emerge.
Furthermore, the exchange will have to provide a notification for the change in the broad market indices at least 4 weeks prior to the scheduled change. In the case of other indices, a notice of 5 working days has to be provided to all the relevant market participants in the manner as directed by SEBI. Such notice shall be applicable for both scheduled or additional readjustment of the indices.
Read More : How to invest in Nifty directly?
What are the changes in the list of stocks in the NSE indices from Sept 2022?
The changes that are about to be reflected in the different indices on NSE are tabled below.
- Nifty 50
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Shree Cement Limited | SHREECEM | Adani Enterprises Limited | ADANIENT |
- Nifty Next 50
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Adani Enterprises Limited | ADANIENT | Adani Total Gas Limited | ATGL |
| Jubilant Foodworks Limited | JUBLFOOD | Bharat Electronics Limited | BEL |
| Lupin Limited | LUPIN | Hindustan Aeronautics Limited | HAL |
| MindTree Limited | MINDTREE | Indian Railway Catering and Tourism Corporation Limited | IRCTC |
| Punjab National bank | PNB | Mphasis Limited | MPHASIS |
| Steel Authority of India | SAIL | Samvardhana Motherson International Limited | MOTHERSON |
| Zydus Lifesciences Limited | ZYDUSLIFE | Shree Cement Limited | SHREECEM |
- Nifty 500
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Advanced Enzyme Tech Limited | ADVENZYMES | Adani Wilmar Ltd. | AWL |
| Eris Lifesciences Limited | ERIS | Aether Industries Ltd. | AETHER |
| Glenmark Life Sciences Limited | GLS | Bharat Rasayan Ltd. | BHARATRAS |
| Hathway Cable | HATHWAY | Deepak Fertilisers & Petrochemicals Corp. Ltd. | DEEPAKFERT |
| Hemisphere Properties India Ltd. | HEMIPROP | Greenpanel Industries Ltd. | GREENPANEL |
| Indo Count Industries Ltd. | ICIL | JBM Auto Ltd. | JBMA |
| IRCON International Ltd. | IRCON | Mahindra Lifespace Developers Ltd. | MAHLIFE |
| MindTree Ltd. | MINDTREE | Motherson Sumi Wiring India Ltd. | MSUMI |
| NESCO Ltd. | NESCO | NIIT Ltd. | NIITLTD |
| Railtel Corporation Of India Ltd. | RAILTEL | Olectra Greentech Ltd. | OLECTRA |
| Sequent Scientific Ltd. | SEQUENT | Patanjali Foods Ltd. | PATANJALI |
| Solara Active Pharma Sciences Ltd. | SOLARA | Raymond Ltd. | RAYMOND |
| Spicejet Ltd. | SPICEJET | Samvardhana Motherson International Ltd. | MOTHERSON |
| Strides Pharma Science Ltd. | STAR | Sharda Cropchem Ltd. | SHARDACROP |
| Tata Steel Long Products Ltd. | TATASTLLP | Swan Energy Ltd. | SWANENERGY |
| UCO Bank | UCOBANK | Tejas Networks Ltd. | TEJASNET |
| Vakrangee Ltd. | VAKRANGEE | Transport Corporation of India Ltd. | TCI |
| Venky’s (India) Ltd. | VENKEYS | Vedant Fashions Ltd. | MANYAVAR |
- Nifty 100
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Jubilant Foodworks Ltd. | JUBLFOOD | Adani Total Gas Ltd. | ATGL |
| Lupin Ltd. | LUPIN | Bharat Electronics Ltd. | BEL |
| Mindtree Ltd. | MINDTREE | Hindustan Aeronautics Ltd. | HAL |
| Punjab National Bank | PNB | Indian Railway Catering and Tourism Corporation Limited | IRCTC |
| Steel Authority of India | SAIL | Mphasis Limited | MPHASIS |
| Zydus Lifesciences Ltd. | ZYDUSLIFE | Samvardhana Motherson International Limited | MOTHERSON |
- Nifty MidCap Select
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Bharat Electronics Ltd. | BEL | ABB India Ltd. | ABB |
| Hindustan Aeronautics Ltd. | HAL | Indian Hotels Ltd. | INDHOTEL |
| Indian Railway Catering and Tourism Corporation Limited | IRCTC | Jindal Steel and Power Ltd. | JINDALSTEEL |
| Mphasis Limited | MPHASIS | Jubilant Foodworks Ltd. | JUBLFOOD |
- Nifty Midcap 150
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Adani Total Gas Ltd. | ATGL | Adani Wilmar Ltd. | AWL |
| Apollo Tyres Ltd. | APOLLOTYRE | Devyani International Ltd. | DEVYANI |
| Bharat Electronics Ltd. | BEL | Jubilant Foodworks Ltd. | JUBLFOOD |
| Exide Industries Ltd. | EXIDEIND | K.P.R. Mill Ltd. | KPRMILL |
| Glenmark Pharmaceuticals Ltd. | GLENMARK | Mindtree Ltd. | MINDTREE |
| Hindustan Aeronautics Ltd. | HAL | Motherson Sumi Wiring India Ltd. | Motherson Sumi Wiring India Ltd. |
| IDBI Bank Ltd. | IDBI | Patanjali Foods Ltd. | PATANJALI |
| Indian Railway Catering and Tourism Corporation Limited | IRCTC | Poonawalla Fincorp Ltd. | POONAWALLA |
| Manappuram Finance Ltd. | MANAPPURAM | Punjab National Bank | PNB |
| Metropolis Healthcare Ltd. | METROPOLIS | Steel Authority of India | SAIL |
| Mphasis Limited | MPHASIS | Vedant Fashions Ltd. | MANYAVAR |
| Nuvoco Vistas Corporation Ltd | NUVOCO | Zydus Lifesciences Ltd. | ZYDUSLIFE |
- Nifty SmallCap 100
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Aptus Value Housing Finance India Ltd. | APTUS | Aether Industries Ltd. | AETHER |
| Avanti Feeds Ltd. | AVANTIFEED | Apollo Tyres Ltd. | APOLLOTYRE |
| Central Bank of India | CENTRALBK | Borosil Renewables Ltd. | BORORENEW |
| Devyani International Ltd. | DEVYANI | Campus Activewear Ltd | CAMPUS |
| Dilip Buildcon Ltd. | DBL | CreditAccess Grameen Ltd. | CREDITACC |
| Edelweiss Financial Services Ltd. | EDELWEISS | Deepak Fertilisers & Petrochemicals Corp. Ltd. | DEEPAKFERT |
| GMM Pfaudler Ltd. | GMMPFAUDLR | Easy Trip Planners Ltd | EASEMYTRIP |
| H.E.G. Ltd. | HEG | Elgi Equipments Ltd. | ELGIEQUIP |
| Indian Overseas Bank | IOB | Exide Industries Ltd. | EXIDEIND |
| JK Lakshmi Cement Ltd. | JKLAKSHMI | Glenmark Pharmaceuticals Ltd. | GLENMARK |
| JM Financial Ltd. | JMFINANCIL | IDBI Bank Ltd. | IDBI |
| Kalyan Jewellers India Ltd. | KALYANKJIL | IIFL Finance Ltd. | IIFL |
| Motilal Oswal Financial Services Ltd. | MOTILALOFS | Manappuram Finance Ltd | MANAPPURAM |
| PNB Housing Finance Ltd. | PNBHOUSING | Metropolis Healthcare Ltd. | METROPOLIS |
| Poonawalla Fincorp Ltd. | POONAWALLA | Network18 Media & Investments Ltd. | NETWORK18 |
| Prince Pipes and Fittings Ltd. | PRINCEPIPE | NLC India Ltd. | NLCINDIA |
| Rail Vikas Nigam Ltd. | RVNL | Polyplex Corporation Ltd | POLYPLEX |
| Rossari Biotech Ltd | ROSSARI | Praj Industries Ltd. | PRAJIND |
| Sonata Software Ltd. | SONATSOFTW | Shree Renuka Sugars Ltd. | RENUKA |
| Sun Pharma Advanced Research Company Ltd. | SPARC | Triveni Engineering & Industries Ltd. | TRIVENI |
- Nifty Auto
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Escorts Kubota Ltd. | ESCORTS | Samvardhana Motherson International Ltd. | MOTHERSON |
- Nifty IT
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| MindTree Ltd.* | MINDTREE | Persistent Systems Ltd. | PERSISTENT |
- Nifty Pharm
| Stocks to be excluded | Stocks to be included | ||
| Company Name | Symbol | Company Name | Symbol |
| Alembic Pharmaceuticals Ltd. | APLLTD | Glaxosmithkline Pharmaceuticals Ltd. | GLAXO |
| Strides Pharma Science Ltd. | STAR | Sanofi India Ltd. | SANOFI |
Conclusion
The reshuffling of NIFTY and other indices of the NSE are a routine procedure that is done periodically by assessing the respective indices and the potential stocks to be included in the index. The periodicity of the reshuffling depends on the individual indices as some indices are restructured quarterly while a majority of them are rejigged on a semi-annual basis.
FAQs
A. The minimum notice period to be given for changes in broad market indices is 4 weeks prior to the scheduled changes.
A. The majority of indices on NSE are scheduled to be recomposed semi-annually on the last day of March and September of the year.
A. Investors can get the complete list of stocks traded on NSE on its website under the Market data tab in the top menu bar. Investors will have to select ‘Securities available for trading’ to get the complete updated list.
A. The changes in the composition of indices on the NSE will have little to no effect on long-term mutual fund investors. However, in the case of investors of index funds or ETFs, they may see lower returns due to potentially increased tracking errors as there may be alterations in the composition of the fund due to a change in their benchmark.
A. The flagship or the primary index on NSE is NIFTY 50.
