Nifty Midcap 50 Reshuffle: BSE, IRCTC, Coforge, Paytm among 11 stocks set to enter; Indian Hotels, Tata Communications, 9 others to exit

Nifty Midcap 50 Index Semi Annual Review, Nifty Midcap 50 Rebalancing Exercise: Stock exchange NSE on Friday announced a number of changes in a number of its indices including the Nifty 50, Nifty Next 50 and Nifty Midcap 50 gauges. With effect from the opening on March 28 (or the closing the previous day), the Nifty 100 index will have five inclusions and five exclusions. 

Nifty 50 Semi-Annual Reshuffle | Inclusions & Exclusions | What is being added to and what is being removed from the broader index?

According to NSE, the following inclusions and exclusions will be implemented in the Nifty Midcap 50 index: 

ALSO READ: Index Rejig: 2 stocks to replace BPCL, Britannia in Nifty 50 | Nifty Smallcap 250 Index Review: 33 stocks set to enter gauge from March 28; Mahindra Lifespace, VIP, Rajesh Exports among exclusions

What is an index rejig or index reshuffle? Does it impact the market prices of securities?

Also known as index rebalancing, an index reshuffle is a periodic review of a stock market index’s components.

This rebalancing process involves the inclusion and/or exclusion of scrips from the index to ensure it continues to be in alignment with its underlying methodology.

Typically, the inclusion of a stock in an index leads to inflows for the stock owing to larger visibility and exposure to institutional players such as banks and mutual funds. On the other hand, the exclusion of a stock from an index may lead to a fall in its price owing to decreased demand. 

ALSO READ: Tata Tech, IREDA to enter F&O segment from March series

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