Banks will gain most on Nifty revamp, says UBS

Banks will gain most on Nifty revamp, says UBS
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First Published: Wed, Jun 24 2009. 12 08 AM IST
Updated: Wed, Jun 24 2009. 12 08 AM IST
Mumbai: Indian financial and engineering stocks will be the biggest beneficiaries of a revamp in the S&P CNX Nifty Index this week, according to UBS AG. Starting on 26 June, the weighting of stocks traded on the National Stock Exchange of India Ltd’s gauge will be based on the amount of shares publicly available for trading, or the free float. Under the current system, the weighting is based on the total market capitalization. The weightings of India’s majority state-owned companies, however, will decline under the new method because they have a lower portion of shares available for trading. Oil and Natural Gas Corp. Ltd will lose 5.1 percentage points of its weighting, while NTPC Ltd will drop by 4.6 percentage points, UBS said, based on stock prices as of 19 June.
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First Published: Wed, Jun 24 2009. 12 08 AM IST
More Topics: Nifty | NSE | Banks | UBS | Money Matters |