HPCL, UPL to join Nifty in September 29 rejig

NSE will include Bajaj Finance, Hindustan Petroleum Corp and United Phosphorus ( UPL) into its benchmark index Nifty from September 29. These stocks will take the places of ACC, Bank of Baroda, Tata Power and Tata Motors DVR, the exchange said in a circular on Monday.

ACC, formerly known as Associated Cement Companies, is moving out of the index for the first time since the Nifty was incorporated in November 1994.

With the inclusion of Bajaj Finance, the weightage of financials in the Nifty is expected to go up further from the existing 32.5 per cent. Banks and financials have the highest weightage on the benchmark in dices. The HPCL stock declined 0.5 per cent to Rs 464 on Monday while UPL gained 0.5 per cent to Rs 838.35.

The exchange made changed to the broader indices, too. In the Nifty 100, Divi's Laboratories and United Breweries have been excluded while Avenue Supermarts and MRF will be included.



The index is re-balanced on semi-annual basis and the exchange gives four weeks before making any changes to the index.

A lot of funds are benchmarked against these indices, which means that any change in an index leads to a corresponding change in their portfolios.