YES Bank, Bharti Infratel may be excluded from Nifty: Edelweiss

Mumbai: The upcoming semi-annual review for rebalancing of the Nifty index could see Bharti Infratel and/or YES Bank exiting the index, said Edelweiss. The brokerage said that a very close competition us being seen among the non-Nifty names to find a place in the Nifty index.

Currently, both HDFC Life Insurance Company and SBI Life Insurance Company have the highest free float market capitalisation among non-Nifty companies but neither of them are part of the futures and options segment, said Edelweiss.

The Nifty index inclusion criteria state that a company should be part of the F&O segment to be included in the index.


Assuming that neither SBI Life or HDFC Life are included in the F&O segment nor the Nifty inclusion eligibility criteria are revised then the next best candidates that fits the criteria for inclusion in the index is either Shree Cement or Dabur (replacing YES Bank), said Edelweiss.

"If we extrapolate the market capitalisation of Shree Cement and Dabur considering their current market capitalisation as static for the next 20 working days, Shree Cement takes a lead over Dabur," said Edelweiss. The brokerage expects the index changes to be announced by the second half of February 2020.

The domestic brokerage said it will review the inclusion/exclusion after close of session on January 31.