No change likely in Nifty's March reshuffling

Mumbai: Nuvama Institutional Equities said it does not expect any changes in the Nifty in the National Stock Exchange's index reshuffling in March 2023. It said LTIMindtree is unlikely to be included in Nifty in March, contrary to market expectations that the stock may replace BPCL.

According to the brokerage, it is early to zero in on a stock that holds the strongest chance to replace HDFC on its merger ex-date.

"We expect the merger's completion by Q1FY24 and a few stocks currently on our radar are Pidilite (PIDI), LTIMindtree (LTIM), Ambuja Cement (ACEM) and Tata Power (TPWR)," said Abhilash Pagaria, head, Nuvama Alternative & Quant.


It will be crucial for stocks to be included in the derivatives segment if they must make it to the Nifty.

"The most important criteria for a Nifty 50 inclusion is that the stock should compulsorily be part of the derivatives segment," said Pagaria. "For instance, average free float market caps of Avenue Supermarts, Adani Green Energy and Adani Transmission are significantly higher than most of the existing Nifty 50 constituents, but the stocks have not been included in the index in the past few reviews as they are not part of the F&O segment."