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 and the Nifty Next 50 together make up the Nifty 100 Index. Further, being a constituent of the Next 50 is mandatory to make it to the Nifty50.
The 11 non-F&O stocks that are currently part of the Next 50 are proposed to be removed in two phases.
In Phase I, the weights of the non-F&O stocks will be capped at 5 per cent, with effect from June 29. Currently, these stocks can have a maximum weight of 10 per cent. In Phase II, which will be applied on September 28, all 11 stocks will be removed and replaced by F&O stocks.
Avenue Supermarts (DMart), Varun Beverages (VBL), Bajaj Holdings & Investment, Adani Green Energy, and Zomato could see the largest outflows from passive trackers due to the capping changes during the first phase, observe analysts.
هذه القصة مأخوذة من طبعة June 05, 2023 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة June 05, 2023 من Business Standard.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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