Shares of ACC, HDFC Asset Management Company (AMC), FSN E-Commerce Ventures that owns Nykaa, Indus Towers, and Page Industries fell in the opening trade on Friday after NSE Indices, an arm of the National Stock Exchange, announced that these five stocks will be dropped from Nifty Next 50 index. These companies will be replaced by Punjab National Bank (PNB), Trent, Shriram Finance, TVS Motor Company, and Zydus Lifesciences in the Nifty Next 50 index, effective from September 29, 2023.

Nifty Next 50 index represents the balance of 50 stocks from the Nifty 100 index, after excluding the Nifty 50 stocks.

Reacting to the news, the shares of Nykaa, ACC, HDFC AMC, Indus Towers, and Page Industries dropped up to 3% in the early trade so far. On the other hand, PNB, Trent, and Zydus Lifesciences climbed up to 2% on inclusion in the Nifty Next 50 index. However, shares of Shriram Finance and TVS Motor Company were trading marginally lower despite the positive development.

Page Industries was the worst performer among these stocks, falling as much as 3% on the BSE, followed by HDFC AMC, which dropped 2.1%. Indus Towers and Nykaa shares were down 1.2% each and ACC shares slipped 0.5% in the early trade.

On the flip side, Trent, the retail arm of Tata Group, gained as much as 2.7%, followed by Zydus Lifesciences and PNB, which added 2.2% and 0.2%, respectively.

Meanwhile, the BSE benchmark was trading 279 points, or 0.43%, lower at 64,872 levels at the time of reporting.

Apart from this, NSE Indices has announced changes in various other Nifty equity indices such as Nifty 500, Nifty 100, Nifty Midcap 150, Nifty Small Cap 250, Nifty Midcap 50, Nifty Midcap 100, Nifty Smallcap 50, and Nifty Smallcap 100. However, there were no changes in the benchmark Nifty.

The index maintenance sub-committee (Equity) of NSE Indices has decided to make these changes in the Nifty equity indices, effective from September 29, 2023. The inclusion and exclusion of stocks in various Nifty indices are part of a semi-annual review based on index methodologies that are objective, non-discretionary, and rules based.

Earlier in July this year, NSE Indices had made changes in the benchmark Nifty following the merger of Housing Development Finance Corporation (HDFC) with HDFC Bank. As part of the restructuring, the NSE had excluded heavyweight HDFC from 50-stock index Nifty, and replaced it with IT major LTIMindtree, a part of Larsen & Toubro group.  In the Nifty 100 index, HDFC was replaced by Jindal Steel and Power, and Mankind Pharma in the Nifty 500 index. 

OP Jindal Group’s firm Jindal Steel & Power also replaced LTIMindtree in the Nifty Next 50 index. While pharma major Mankind Pharma was included in several other Nifty indices, including Nifty Midcap 150, Nifty Midcap 100, and Nifty 200.

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