These 5 stocks may exit Nifty Next 50 index in March rejig: Nuvama Wealth

During the index review of the National Stock Exchange in March, the frontline indices – Nifty50, Nifty Bank and Nifty IT – are unlikely to see any changes, reiterated Nuvama Wealth.

However, the Nifty Next 50 index is likely to see some rejig, with 5 exclusions and inclusions.

In December, the quantitative research firm predicted that Varun Beverages, ABB India, and Page Industries could make way into the Nifty Next 50 index in the March review.

Gland Pharma, Biocon, Mphasis, Bandhan Bank and Muthoot Finance are likely to be removed from the index, according to the brokerage.

The two other candidates to get included in the index could be one among Adani Power, Adani Wilmar, Trent, or TVS Motor, Nuvama Wealth said.

Adani Power was excluded from the Nifty indices earlier after the promoter proposed voluntary delisting of shares but in September last year, the promoters withdrew the delisting proposal.

As a result, Nuvama Wealth feels the stock should get included in the March review. Adani Wilmar qualifies for inclusion into Nifty Next 50, but if the exchange uses the discretion to give preference to stocks that are part of the derivatives segment, then Nuvama Wealth believes either Trent or TVS Motor can be probable candidates for inclusion in the index.

The inclusion of Adani Power, ABB India, Page Industries, and Varun Beverages may result in inflows of $136 million, the brokerage said.

If Trent enters the index, it will result in inflows of $40 million, while if it is Adani Wilmar, then inflows could be to the tune of $13 million.

Meanwhile, exclusions of Gland Pharma, Biocon, Mphasis, Bandhan Bank, and Muthoot Finance will result in outflows of $100 million.

In place of Muthoot Finance, if Colgate Palmolive (India) exits the Nifty Next 50 index, then it will see outflows of $31 million, the brokerage predicted.

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