The National Stock Exchange of India (NSE) changed its indices and took the shares of four companies in the Adani group out of the Nifty Alpha 50 index. Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, along with ten other stocks, have been taken out of the Nifty Alpha 50 index. Every three months, the rejig and replacement is done after a review of the strategy indices. The Adani stocks will be taken off the NSE index on March 31.
The Nifty Alpha 50 index is made up of 50 stocks. It chooses stocks with high alphas by looking at how liquid they are and how much money they are worth on the market. The NSE says that this will make them investable and easy to copy. During this change, 14 stocks have been taken out of the Nifty Alpha 50 index. The other companies are Aditya Birla Fashion and Retail, Angel One, Elgi Equipments, Fine Organic Industries, Gujarat Narmada Valley Fertilizers and Chemicals, KEI Industries, Page Industries, SRF, Suzlon Energy, and Tata Elxsi.
The following companies will be added to the Nifty Alpha 50 index in their place: Aditya Birla Capital, Apollo Tyres, Bank of India, Bharat Heavy Electricals, Britannia Industries, IDFC First Bank, Jindal Steel & Power, L&T Finance Holdings, Mahindra & Mahindra Financial Services, MRF, Power Finance Corporation, Punjab National Bank, Siemens, and Zydus Lifesciences.
Along with the Nifty Alpha 50 index, the Nifty 100 Alpha 30 index will not include the four Adani group shares, as well as Adani Ports and SEZ. The Nifty 200 Alpha 30 index will also not include Adani Enterprises. The Nifty100 Alpha 30 index tries to measure how well blue-chip shares from the Nifty 100 are doing. The weights of the shares are based on their alpha score and how much free float they have. Ambuja Cements and ACC, two cement stocks owned by Adani, have also been taken out of the Nifty Low Volatility 50 index. On the other hand, Nifty High Beta 50 will include Adani Total Gas and Adani Transmission.
Since January 24, when a report from US-based short seller Hindenburg accused the conglomerate of fraud and stock manipulation, Adani group stocks have been under pressure. But in the last few sessions, the shares of the Adani group have risen sharply. From February 28 to March 6, Adani Enterprises has gone up more than 45%. On Monday, the company’s stock went up 5% as the markets as a whole were going up.
Some of the other things the group talks about also make them feel good. Shares of Adani Power, Adani Transmission, Adani Energy, Adani Total Gas, and Adani Wilmar all went up by 5%, and at the end of the day, they were all at the top of their respective price ranges. The rise in Adani group stocks is due to a Rs 15,466 crore investment by the global equity fund GQG in four group entities through block deals last week. GQG said that the group has “fantastic assets,” which caused the investment.