Another Adani Group stock may get included in Nifty 50 index

Edelweiss Alternative & Quantitative Research has carried out a pre-emptive analysis of the Semi-Annual Index (SAIR) September 2022 Rejig for Nifty indices.

The index provider will officially announce the list in the second half of August 2022.

According to the brokerage's preliminary analysis, Adani Enterprises holds a high chance to dislodge Shree Cements in the upcoming Nifty September review for the Nifty 50 index. 

The only risk factor is of any sharp contra price move in either of the probable names can lead to a change in conviction.

Adani Enterprises will be the second Adani Group stock, if included, in the Nifty 50 index. Currently, Adani Ports and Special Economic Zone Limited is part of the index.

Shree Cements has a higher probability of being excluded from the Nifty index while the next name on radar, as per Edelweiss, would be Hero Motors.

The cut-off date is July 29 whereas the announcement is expected to be in the second half of August and rebal date is September 30, 2022.

On the other hand, Nifty Next 50 Index could see probable inclusions of Life Insurance Corporation (LICI), Tata Power, Adani Wilmer, IRCTC, Mphasis Ltd.

While, probable exclusions in the index could be Lupin Ltd , Jubilant Foodworks, Zydus Lifesciences, Punjab National Bank (PNB), Steel Authority of India (SAIL) and Adani.

The most important criteria for Nifty 50 Inclusion is that the stock should compulsorily be part of the derivatives segment.

For instance, average free float market cap of Avenue Supermarts (DMART), Adani Green Energy and Adani Transmission is significantly higher than most of the existing Nifty 50 constituents, but the stock has not been included in the index for the past few reviews as they are not a part of the F&O segment.