Adani Power, Jio Financial, IRFC, PFC shares likely to enter Nifty Next 50 index, says Nuvama

Five shares namely Jio Financial Services Ltd, Adani Power Ltd, Power Finance Corporation Ltd (PFC), Polycab India Ltd and Indian Railway Finance Corporation Ltd (IRFC) could enter Nifty Next 50 index in the March rejig of Nifty indices. One of the three stocks namely REC Ltd, Macrotech Developers Ltd (Lodha) and HDFC AMC Ltd, may also join the index, Nuvama Alternative & Quantitative Research said in a note.

Canara Bank Ltd could replace Bandhan Bank Lt in Nifty Bank while Shriram Finance Ltd could replace UPL Ltd in the NSE barometer Nifty50, the brokerage said adding that it sees no changes in Nifty IT constituents.

The market capitalisation cut-off date is January 31 and the announcement on Nifty indices is likely in the second half of February 2024. Any changes to indices will be effective from March 31, 2024.

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If Jio Financial is included in the Nifty Next 50, the stock could see $66 million in passive inflows. IRFC ($15 million inflows), PFC ($45 million inflows), Polycab India ($20 million inflows, Adani Power ($33 million inflows) are other high Nifty Next 50 probables, as per Nuvama. REC ($40 million), Macrotech Developers ($20 million) and HDFC AMC ($24 million) have borderline chances of making it into the Nifty Next 50 index.

In the Nifty Bank, a Canara Bank entry could lead to $51 million in passive inflows while a Bandhan Bank exit, if it does, may lead to $39 million in outflows. As per Nuvama's analysis, Canara Bank is also well-positioned for MSCI Std Index inclusion in the February 2024 review, necessitating a 15 per cent-plus gain by mid-January for this to play out.

 

Shriram Finance could see $217 million inflows on Nifty inclusion while UPL may see $114 million outflows.

Meanwhile, one can expect inclusion of Tata Technologies, IREDA Ltd, Honasa Consumer, J&K Bank, SBFC and RR Kabel in the broader index Nifty 500 index.   

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