New-age insurance, green energy stocks in queue for Nifty50 entry

Mumbai, Jan 17 : New-age stocks from insurance, green energy and internet space are in the queue to enter benchmark Nifty50 index, which reflects improving demand for such businesses in the economy, said a recent report by ICICI Securities.
The report cited ICICI Lombard, Adani Green and Info Edge as major contenders to get into the benchmark index in times ahead.
It said that Nifty50 on the National Stock Exchange (NSE) continues to add consumer names. Tata Consumer Products is likely to enter the benchmark index in the next reshuffle in March replacing GAIL, it added.
“Based on data till 12th Jan’21, the upcoming semi-annual NIFTY50 reshuffle could result in Tata Consumer replacing GAIL on 29th Mar’21,” it said.
Currently, NIFTY50 ETF and index AUMs stand at Rs 1,261 billion. GAIL currently has an estimated weight of 40 bps in the index, while Tata Consumer is expected to enter the index with a weight of 60 bps, entailing ETFs and index funds buying worth Rs 7.6 billion.
“The higher presence of consumption (staples, discretionary, and auto) as a theme within the NIFTY50 is understated due to the presence of large consumer business within a large conglomerate,” said the ICICI Securities report.