Tata Consumer Products To Replace GAIL In Nifty 50 From March 31

Tata Consumer Products Ltd. will replace GAIL (India) Ltd. in the benchmark Nifty 50 from March 31, 2021 as part of a semi-annual rejig.

The changes will also be applicable to Nifty 50 Equal Weight Index, the nation’s largest bourse said in a media statement. The Nifty 50 is reconstituted twice every year in March and September.

The exchange also reshuffled the Nifty Next 50, Nifty 500, Nifty 100 and Nifty Midcap 150 indices, among others.

In the previous index rejig effective Sept. 25, 2020, Divi’s Laboratories Ltd. and SBI Life Insurance Co. entered the benchmark, while Bharti Infratel Ltd. and Zee Entertainment Enterprises Ltd. were excluded.

After inclusion, Edelweiss Alternate Research expects buying worth $82.5 million in Tata Consumer Products with a likely weight of 0.59%, while the exit of the state-run gas distributor may result in selling worth $60.2 million.

According to ICICI Securities, GAIL has an estimated weight of 40 basis points in the index, while Tata Consumer is expected to enter with a weight of 60 basis points, entailing ETFs and index funds buying worth Rs 760 crore. On being excluded, the brokerage expects GAIL to see selling worth Rs 510 crore.

Shares of Tata Consumers ended 1.5% higher ahead of the announcement on Tuesday after hitting a record high of Rs 635 apiece. Shares of GAIL, too, closed 3.2% higher at Rs 147.35 apiece, the highest since July 16, 2019.

See the list of full changes here...