HDFC, which is currently a constituent of the Nifty 50 Company, will soon be merged with HDFC Bank, resulting in a vacant position within the index. On July 13, 2023, LTI Mindtree Limited will take the place of HDFC in the Nifty 50 Company.
In addition to this change, several other adjustments have been announced:
- Jindal Steel & Power Ltd. will replace HDFC in the Nifty 100 index.
- Jindal Steel & Power Ltd. will also replace LTI Mindtree in the Nifty 100 index.
- Mankind Pharma will replace HDFC in the Nifty 500 index.
- Zydus Lifesciences Ltd. will take the place of Jindal Steel in the Nifty Midcap Select index.
- Aditya Birla Capital will replace Jindal Steel in the Nifty Midcap 50 index.
For further details, please refer to the press release issued by NSE, which can be found here
Insight: NIFTY50 Index Fund has AUM of around Rs. 35,000 Cr. Now, post replacement of HDFC with LTI Mindtree, at the same weightage of around 6%, there would be a inflow of around 2100 Cr. in LTI Mindtree (due to Forced Buying of Index funds).
What option trading strategy can you think can be applied here? So share your views.
– Shrimohan J.
Product Operations @ Dhan