Shriram Finance to replace UPL in the Nifty starting March 28th

On Wednesday, the National Stock Exchange (NSE) announced that Shriram Finance will replace UPL in the Nifty50 index starting March 28. This change was made because Shriram Finance had the highest six-month average free-float market capitalization among eligible companies.

UPL shares dropped by 18% in the past six months, while Shriram Finance saw a 26% increase. UPL’s removal from the Nifty50 index is due to its exclusion from the Nifty 100 index.

The Nifty Next 50 index now includes Adani Power, Indian Railway Finance Corporation, Jio Financial Services, Power Finance Corporation, and REC, replacing Adani Wilmar, Muthoot Finance, PI Industries, Procter & Gamble Hygiene & Health Care, and Shriram Finance.

What led to Shriram Finance replacing UPL in the Nifty50 index?

Shriram Finance took UPL Ltd’s place in the Nifty50 index because it had the highest six-month average free-float market capitalization.

In a statement, NSE announced, “Shriram Finance has joined the Nifty50 index due to having the highest six-month average free-float market capitalization among eligible candidates, replacing UPL Ltd.

UPL’s removal from the blue-chip index follows its exclusion from the Nifty 100, which is the parent index for the Nifty 50, the statement added.

The Index Maintenance Sub-Committee (Equity) of NSE Indices has decided to substitute stocks across various indices as part of its routine review. These adjustments will take effect from March 28, 2024.

Morgan Stanley reaffirms ‘Overweight’ rating for Shriram Finance, sets target price at Rs 3,000, indicating a 28.64% upside from the previous close.

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