Shriram Finance Ltd. has earned a spot in the Nifty 50 index due to its highest six-month average free-float market capitalization among eligible companies, stepping in as a replacement for UPL Ltd.
The decision to remove UPL Ltd. from the Nifty 50 index follows its exclusion from the Nifty 100 index, which serves as the parent index for Nifty 50.
This inclusion of the non-banking financial company (NBFC) in India’s largest index could lead to a potential influx of up to $245 million from passive funds. Conversely, UPL could experience an outflow of approximately $107 million, as suggested by Nuvama Alternative and Quantitative Research.
Since its addition to the Nifty in September 2017, UPL’s stock has shown stagnant returns.
