Nifty Index - Idea Cellular and Cairn in, MTNL and HPCL out

Date October 30, 2007

The composition of the 50 share NIFTY index will be altered soon. NIFTY is the benchmark index of the National Stock Exchange, NSE. Idea Cellular and Cairns have found their way in while MTNL and HPCL have been chucked out from the NIFTY. These tow changes made in NIFTY will come into effect from 12 December 2007. The share prices of Idea Cellular and Cairns zoomed as soon as this announcement was made. There will be more demand for NIFTY based stocks, since Index funds will have to buy these stocks to match the returns generated by the Indices. Hence on 12 December 2007, Index funds will buy Idea Cellular and Cairns and will sell MTNL and HPCL.

Category Posted in Indian Stock Market