The state-owned Hindustan Petroleum Corporation Ltd (HPCL) will now be replaced by the Britannia Industries Ltd in the Nifty 50 Index from March 29, 2019. According to the NSE, the replacement will also be applicable to the Nifty 50 Equal Weight Index.
The indices which are reconstituted twice every year witnessed the last change in August 2018, JSW Steel Ltd was introduced in the Nifty 50 in place of Lupin Ltd. The reconstitution is based on data for six months ending in January and July.
According to the National Stock Exchange, one of the crucial criteria which is followed to select the Nifty 50 constituents is the free-float market capitalisation of the company. The free-float market cap of the company should be at least 1.5 times that of the smallest member of the index. HPCL free-float m-cap during the period stood at Rs 18,020 crores, less than half of Britannia Ltd.
Godrej Consumer Products Ltd. was the other company that was eligible to enter Nifty 50, according to the criteria. Following are some other companies, added and removed from the list:
Nifty 500 :