DMart, Info Edge may join the Nifty in September

Mumbai: Avenue Supermarts, owner of DMart, and online job posting website operator Info Edge (India) are in the running for inclusion in the benchmark Nifty, according to Edelweiss Alternative Research. The brokerage said currently the calculations do not show any confirmed Nifty inclusion or exclusion candidates.

Edelweiss said supermarket chain operator Avenue Supermarts meets most of the criteria for inclusion, the absent factor being that it is not a part of the derivatives segment. In case the stock gets introduced in derivatives before the NSE announcement of index rebalancing, which normally happens in end-August, there is a high probability of inclusion in the Nifty, said Edelweiss. The rebalancing date is likely to be on September 29.

Info Edge falls short of the requirement of the stock having 1.5 times the average free float market cap of the smallest constituent in the index, said Edelweiss.

The trading days till July 30 will be crucial to move the needle, the brokerage said. Info Edge will see a weightage of 55 basis points or inflow of $110 million upon inclusion in the index. Avenue Supermarts is likely to have a weightage of 72 basis points or $140 million on being included in the index.

Indian Oil Corporation is likely to get excluded if any one of these gets included in the index, resulting in a weight reduction of 43 basis points or outflow of $82 million, said Edelweiss