Nifty 500 Index Rebalancing: Swiggy, Waaree Energies, NTPC Green, LT Foods among 30 inclusions

Nifty 500 Rebalancing Exercise, Nifty 500 Index Semi-Annual Review: Stock exchange NSE on Friday announced a number of changes in its indices including the Nifty 50 and the Nifty 500. With effect from the opening on March 28 (or the closing the previous day), as many as 30 stocks will replace others in the Nifty 500. 

Nifty 500 Semi-Annual Reshuffle | Inclusions & Exclusions

According to NSE, the following changes will be implemented in the Nifty 500:

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What is an index rejig or index reshuffle? Does it impact the market prices of securities?

Also known as index rebalancing, an index reshuffle is a periodic review of a stock market index's components.

This rebalancing process involves the inclusion and/or exclusion of scrips from the index to ensure it continues to be in alignment with its underlying methodology.

Typically, the inclusion of a stock in an index leads to inflows for the stock owing to larger visibility and exposure to institutional players such as banks and mutual funds. On the other hand, the exclusion of a stock from an index may lead to a fall in its price owing to decreased demand. 

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