In order to accommodate the two entrants, BHEL or Bharat Heavy Electricals and Idea Cellular have been excluded from the Nifty basket of stocks. The changes, effective March 31, 2017, were announced in February by India Index Services & Products Ltd (IISL), an NSE group firm that manages Nifty 50 and other indices.
Analysts said inclusion of Indiabulls Housing Finance and Indian Oil Corporation or IOC was positive for the companies as it would give them more visibility among other stocks listed on the National Stock Exchange and their trading volumes would jump. Inclusion in the Nifty 50 basket of shares will also provide mutual funds with a greater access to these stocks, they added.
Also, index funds may sell their holdings in the two stocks - Idea Cellular and BHEL - excluded from the Nifty, according to analysts. Idea Cellular shares declined more than one per cent during Friday's session to hit an intraday low of Rs 86.10. BHEL shares, however, rose 0.8 per cent.
Indiabulls Housing Finance shares ended Friday's session with a gain of 0.72 per cent at Rs 997.75 while Indian Oil Corporation settled 2.72 per cent higher at 387.05 apiece on the National Stock Exchange, whose benchmark Nifty finished at 9,174.