India Index Services & Products Ltd, an NSE-Crisil joint venture that maintains Nifty index, on Wednesday announced that IT major Wipro and diversified group Siemens will be dropped from the 50-share benchmark index from April 1 to be replaced by IndusInd Bank and NMDC.
Wipro's, India's third largest software exporter's, exclusion came as a surprise to the street and experts said that the stock may face some selling pressure due to portfolio realignment. The company has been replaced by NMDC which enjoys the highest market cap among mining companies. Moreover, the company has also been replaced at the CNX IT Index by a lesser known company Infotech Enterprise. Wipro has also been removed from the CNX Service Index, the CNX 100 Index, the CNX 200 Index and the CNX 500 Index.
The software exporter said that the exclusion from Nifty was linked to its demerger process. "A corporate action like our demerger of a listed company would generally result in a short term withdrawal of the scrip from the index as it has been happening in the past where such corporate action had been initiated. We expect restoration of the same on completion of the corporate action, which we expect to conclude in the next few months," the company said in a press statement.
The institution also announced some other changes in various other indices of NSE such as CNX Nifty Junior Index, CNX 100 Index, CNX 200 Index CNX 500 Index, CNX Midcap Index and CNX Smallcap Index by its Index Maintenance Sub-Committee during a periodic review.
Source - Wipro