(Reuters) -India’s National Stock Exchange (NSE) said on Friday it will add hospital-chain operator Max Healthcare Institute and Indigo-parent InterGlobe Aviation to its Nifty 50 index effective September 30.
IndusInd Bank and Hero MotoCorp will be removed from the index as part of the NSE’s semi-annual rebalancing, the exchange said.
NSE’s semi-annual index reshuffle is based on stocks’ average free-float market capitalization over six-month periods ending January 31 and July 31, with the changes implemented in March and September, respectively.
Changes to the Nifty 50 usually lead to reshuffling of exchange traded funds linked to the benchmark index, which could result in several million dollars worth of inflows and outflows for the stocks that are rejigged.
Addition to the index could bring in $400 million for Max Healthcare, according to an estimate from brokerage firm Nuvama in July.
For the year through July-end, shares of Max and InterGlobe rose 9.34% and 28.61%, respectively, while those of IndusInd fell 17.59%. Hero’s stock was up 1.82%.
InterGlobe shares hit a record high earlier this week after Jefferies said it expected the airline’s market share gains to sustain across domestic and international segments.
Meanwhile, IndusInd Bank took a $230 million hit in the year ended March 31 due to misaccounting in internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April.
(Reporting by Hritam Mukherjee and Urvi Dugar in Bengaluru; Editing by Leroy Leo)
