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Business News/ Markets / Stock Markets/  Shriram Finance share price gains over 4% on Nifty 50 inclusion; Jio Finance up 3%, UPL shares down 1%
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Shriram Finance share price gains over 4% on Nifty 50 inclusion; Jio Finance up 3%, UPL shares down 1%

Jio Financial Services shares also jumped more than 3% on inclusion in the Nifty Next 50 index. The estimated inflows in Jio Finance shares is $89 million.

Shriram Finance share price has risen over 18% in the past three months, while the stock is up more than 90% in one year.Premium
Shriram Finance share price has risen over 18% in the past three months, while the stock is up more than 90% in one year.

Shriram Finance share price rallied over 4% in early trade on Thursday as the stock will replace UPL in the Nifty 50 index with effect from March 28. UPL shares declined more than 1% after the announcement.

Jio Financial Services shares also jumped more than 3% on inclusion in the Nifty Next 50 index.

NSE Indices said that Shriram Finance has been added to the Nifty 50 index, replacing UPL Ltd, due to its highest 6-month average free-float market capitalization within the eligible universe.

With the inclusion in Nifty 50, Shriram Finance is expected to experience a net inflow upwards of $200 million, equivalent to a 6-day volume impact and 7.1 million shares, according to Nuvama Institutional Equities.

On the contrary, UPL will witness an outflow of $100 million, equivalent to a 3.5-day volume impact and 17.5 million shares, said the brokerage firm.

The estimated inflows in Jio Finance shares is $89 million.

In its semi-annual review of broad market indices, NSE also has made a significant reshuffling within the Nifty 500 index, with 34 stocks being added and removed. Other indices such as Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, and Nifty Midcap Select also underwent significant changes.

Read here: Shriram Finance to be included in Nifty50, UPL excluded — check full list here

These changes shall become effective from March 28, 2024 (close of March 27, 2024).

Shriram Finance has delivered strong earnings for three quarters, affirming the positive impact of the merger and AUM growth of 15% through FY26E, and a credit cost of 2%, Nuvama Equities said.

The brokerage reiterated a ‘Buy’ recommendation on the stock, designating it as a top pick with a target price of 2,700 per share. 

A potential divestment of its housing finance arm could enhance capital and valuation, said the brokerage firm.

Shriram Finance share price has risen over 18% in the past three months, while the stock is up more than 90% in one year. In 2024 so far, Shriram Finance stock price has gained over 13%.

At 9:20 am, Shriram Finance shares were trading 1.62% higher at 2,386.95 apiece, while Jio Finance shares were up 2.48% at 316.00 apiece on the BSE.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 29 Feb 2024, 09:24 AM IST
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