Shares of Shriram Finance surged by nearly 2% following the announcement that iNBFC Shriram Finance will replace agro-chemical firm UPL Ltd in the National Stock Exchange’s benchmark index NIFTY 50.
The decision to replace UPL with Shriram Finance in the Nifty50 index stems from Shriram Finance’s highest six-month average free-float market capitalization. The National Stock Exchange (NSE) clarified in a statement that Shriram Finance earned its inclusion in the prestigious index due to this metric, surpassing other eligible candidates.
As of 9:51 am the shares were trading 2.05% higher at ₹2,397.00
Explaining the rationale behind the move, the NSE stated, “Shriram Finance has been included in the Nifty50 index as it has the highest six-month average free-float market capitalization within the eligible universe as a replacement to UPL Ltd.”
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Shriram Finance