According to brokerage companies, Reliance Group’s Jio Financial Services can also be included in Nifty 50.
Nifty and Sensex have great importance in the Indian stock market. In December last year, Jhomatoche shares would have been included in the Sensex. There is a possibility of Jhomatola getting a place in Nifty 50 in the coming month of March. According to brokerage companies, Reliance Group’s Jio Financial Services can also be included in Nifty 50.
What are the criteria for inclusion in Nifty 50?
National Stock Exchange (NSE) selects the companies to be included in Nifty 50 based on certain criteria. In this, the company’s stock market performance and ‘free float market capitalization’ are mainly considered.
What is Free Float Market Cap?
According to the money control chart, free float market cap is the total market value of a company’s shares open to investors. That is, the price of shares available for trading in the market excluding the promoters’ deal holding. For example, if the total market cap of Stock A is ₹ 1,00,000 crore shares and promoters hold 50% shares, then its free float market cap is ₹ 50,000 crore shares.
Stock B has a total market cap of ₹80,000 crore and promoters own only 30% shares, and its free float market cap is ₹56,000 crore. Or according to the calculation, if stock A has higher market cap, stock B has higher free float market cap and hence it can get a place in Nifty.
Britannia and BPCL find a way out of Nifty?
According to brokerage companies, to include Zomato and Jio Financial Services in Nifty 50, Britannia Industries and Bharat Petroleum Corporation Limited (BPCL) may be taken out of Nifty. If this happens, it will be a big financial blow for Britannia and BPCL.
Result of Guntavanukivar
According to the report of brokerage firm JM Financial, new investment worth ₹ 5300 crore can be made in Zomato. An investment of Rs 3000 crore is expected in Jio Financial Services. On the other hand, there is a possibility of huge amount of money being lost from the shares of BPCL and Britannia. Nifty 50 shares are traded twice a day. Companies are listed in Nifty 50 in the months of September and March.
Considering the data from February to July or period, it is changed to September. Improvements can be made in March after seeing the performance from August to January or during the period. Let us understand what are the benefits of including shares in Nifty 50.
Increasing investor confidence: The companies in Nifty 50 are attracted by big investors.
Mutual fund and ETF investment increases: Many mutual funds and exchange traded funds (ETFs) or companies invest heavily in large investors.