ADAG firms RCom, RPower excluded from Nifty

Two Anil Dhirubhai Ambani Group (ADAG) firms Reliance Communications (RCom) and Reliance Power (RPower) on Friday will exit the wide-based National Stock Exchange (NSE) index Nifty.

Last year, RCom and Reliance Infra, another company from the Anil Ambani-led group, were excluded from BSE Sensex. Shortly thereafter, NSE had also announced Reliance Capital's exit from its Nifty index with effect from October 2011.

The change was announced in March by the India Index Services & Products Ltd (IISL) - a joint venture of NSE and Crisil - which manages the various indices at the exchange.

RCom and RPower will be replaced by Asian Paints and Bank of Baroda.

"The bi-annual replacement of stocks in the Nifty is purely an outcome of the average value of free float, and not any other consideration," Reliance Group spokesperson had earlier said.

"Reliance Power and Reliance Communications have significantly high promoter group holdings of approximately 80 per cent and 70 per cent respectively, leading to relatively lower value of the average free float over the past 6 months. Based on the likely increase in quantum and value of free float over a period of time, we expect both these stocks to once again be included in the Nifty at an appropriate time in the future," he added.

IISL had said the changes have been made as part of a periodic review and they would become effective from April 27, 2012.

With PTI inputs