Vedanta to pave way for HDFC Life in Nifty
Published On: Friday, July 3, 2020 | By: Team KnowMyStock
In an out-of-turn announcement, the NSE yesterday (2nd July 2020) announced that life insurance player HDFC Life will replace the outgoing Vedanta Ltd in the Nifty50 index from July 31, as the latter got shareholders' approval on June 25 for delisting. Meanwhile, analysts at ICICI Securities expect that in the semi-annual change in the Nifty50 constituents to be announced by August-end, SBI Life Insurance will enter the index, replacing Zee Entertainment (ZEEL). These changes, according to the brokerage firm, will improve the earnings growth profile of Nifty50, and also increase the weight of non-lending financial services stocks in the index.
Analysts advise that the inclusion/exclusion of stocks to/from the indices should not be the criteria for the investors to buy/sell the stock. The investment decision, they say, should be made on the company's growth prospects, the company's balance sheet, management, stock valuation, as well as one's risk appetite. That said, insurance, as a sector, has a huge potential in the country and investors should place their bets on "growth stocks" in the sector.
Tags: Vedanta Ltd HDFC Life Nifty
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