Nuwama Alternative and Quantitative Research on Tuesday said LTIMindtree, the merged entity of L&T Infotech and Mindtree, is unlikely to replace BPCL in the next Nifty reshuffle in March next year. It sees Adani Power, Varun Beverages, ABB, Page Industries among stocks that could enter Nifty Next 50. Nuwama also sees one of three stocks — Adani Wilmar or Trent and TVS Motor — likely to enter the index in the next 50.
On the inclusion of LTIMMindtree, Nuwama said: “This is the most asked question, and as per our best understanding of current practice we do not expect LTIM Mindtree (LTIM) to join Nifty in March 2023 review are,” Nuwama said.
Nuwama said it is too early to identify any stock that has the strongest chance of transforming HDFC on the pre-merger date. For now, it expects the merger to be completed by Q1FY24 and some of the stocks currently on Nuwama’s radar are Pidilite, LTI Mindtree, Ambuja Cement and Tata Power.
Nuwama said that the most important criteria for inclusion in Nifty is that the stock should mandatorily be a part of the derivatives segment.
For example, the average free float market cap of Avenue Supermarts, Adani Green Energy and Adani Transmission is significantly higher than most of the existing Nifty 50 constituents, but for the past few reviews the shares have not been included in the index as they There is no one. Part of the F&O segment.
“If any of the above stocks get included in the derivatives by the announcement date, it will move to Nifty 50,” it said.
Biocon, Gland Pharma, Mphasis and Bandhan Bank are being seen as possible exclusions from the Nifty Next 50 pack.
Nuwama noted that Adani Power was excluded from all Nifty indices in the September reshuffle because of the proposed voluntary delisting. On 17 September, Adani Power informed the stock exchanges on the withdrawal of its offer to voluntarily delist.
“Thus, we expect the stock to make a comeback in the Nifty index,” it said.
The index provider will officially announce the list in the second half of February 2023. The M-cap cut-off date will be January 31 and the effective date of change will be March 31.
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