Journalism of Courage
Boosted by their entry into the National Stock Exchange’s barometer Nifty-50,Bajaj Auto,Sesa Goa and Dr Reddy’s Laboratories today surged by up to 5.32 per cent on the bourses.
The maximum gain was seen in the shares of Bajaj Auto,which soared 5.32 per cent to hit an all-time high of Rs 1,555 on the Bombay Stock Exchange.
“The entry in the Nifty-50 will definitely have a positive impact on the stocks in terms of valuation. Besides,the stocks will be covered by the larger universe of investors,” Unicon Financial Services CEO Gajendra Nagpal said.
The three scrips,Bajaj Auto,Sesa Goa,and Dr Reddy’s Laboratories,have been included in the NSE’s 50-share index Nifty from today. The three new entrants have replaced the telecom major Idea Cellular,the engineering firm ABB and the realty giant Unitech.
Iron ore producer Sesa Goa jumped 5.19 per cent to touch one-month high of Rs 345.50 on BSE.
An increase of 2.50 per cent was witnessed in the shares of Dr Reddy’s which finished the day at Rs 1,476.
Shares of the companies,that ceased to be a part of the Nifty-50,also ended the day on a strong note with Unitech gaining 7.03 per cent on BSE. Idea Cellular and ABB also rose by 0.07 per cent and 0.51 respectively.
S&P CNX Nifty is a diversified 50 stock index accounting for 22 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios,index based derivatives and index funds.
The changes were decided by the Index Maintenance Sub-Committee during its periodic review on August 18.
Till now Bajaj Auto,Dr Reddy’s Lab and Sesa Goa were part of NSE’s CNX Nifty Junior Index,the next rung most liquid stocks after Nifty. Now these firms,besides Tata Teleservices (Maharashtra) Ltd,have been excluded from the Nifty Junior Index.
These four stocks have now been replaced by Grasim Industries,Rural Electrification Corporation,Shriram Transport Finance and Yes Bank in the Nifty Junior.
