Shares of Shriram Finance soared 4 percent in early trade on February 29 after the company was included in the Nifty 50 post the index’s latest rejig. On the other, UPL Ltd, the stock to get replaced by Shriram Finance, fell 2 percent.
“Shriram Finance has been included in the Nifty 50 index as it has the highest 6 month average free-float market capitalization within the eligible universe as a replacement to UPL,” NSE stated in a press release. The changes will come into effect from March 28.
At 9.18 am, shares of Shriram Finance were trading at Rs 2,402.80 on the NSE, while UPL Ltd was at Rs 471.05.
As per Nuvama Alternative and Quantitative Research, Shriram, Finance is likely to attract inflows of around $217 million from the inclusion while UPL may see outflows worth $114 million due to the rejig in Nifty 50.
While shares of Shriram Finance have soared over 96 percent in the past year, aided by its strong financial performance, those of UPL have slumped around 35 percent in the same period.
UPL was also one of the worst performers on the Nifty 50 last year as the stock was beaten down amidst the company’s piling debt concerns and a downturn within the agri-input industry.
The article originally appeared on Moneycontrol.