Nuvama does not expect any rejig in the Nifty IT or Nifty Bank Index. However, a significant outperformance by Canara Bank or underperformance by Punjab National Bank of 20% till the end of December, if sustained till January-end, could lead to changes, it said.
The most important criteria for Nifty inclusion is that the stock should compulsorily be part of the derivatives segment, Nuvama said.
For instance, average free float market caps of Avenue Supermarts Ltd., Adani Green Energy Ltd. and Adani Transmission Ltd. are significantly higher than most of the existing Nifty 50 constituents, but the stocks have not been included in the index for the past few reviews as they are not a part of the F&O segment, it said.
“If any of the above stock gets included in derivatives by the announcement date, then it would make it to Nifty 50.”
The analysis highlighted that Adani Power Ltd. was excluded from all the Nifty indices in the September rejig on account of proposed voluntary delisting. On Sept. 17, Adani Power intimated stock exchanges on withdrawing of the proposal to voluntarily delist. “Thus, we expect the stock to make a comeback to Nifty Indices,” it said.