The constituents of Nifty 50 will change from tomorrow, how will this affect investors?

Stocks
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The following changes to Nifty 50 will be effective tomorrow, I’m curious to how this will impact investors.

These companies are being included

Company Name Symbol
Bajaj Finance Ltd BAJFINANCE
Hindustan Petroleum Corporation Ltd. HINDPETRO
UPL Ltd. UPL

These companies are being excluded.

Company Name Symbol
ACC Ltd. ACC
Bank of Baroda BANKBARODA
Tata Power Co. Ltd. TATAPOWER
Tata Motors Ltd DVR TATAMTRDVR

Exchange circular.

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This would change

  1. Fund houses and their schemes tracking purely nifty as benchmark in order to adjust weightage may Buy or add further those stocks which would be added to nifty and sell or reduce the ones going out (or might have already done) leading to rise and fall of prices of stocks concerned respectively in days to come.
  2. Nifty market capitalization, eps and eventually pe will get adjusted accordingly to the components… Now pe is around 25.5
  3. Nifty would again become 50 stocks index as 3 stocks r added and 4 removed.
  4. Concerned stocks would continue to perform as per their respective fundamentals… :grinning:
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  1. Concerned stocks would continue to perform as per their respective fundamentals. Is efficient market theory real? What’s your take on this?
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In long run efficient market hypo does prove to b effective… U can see some of the best eg in Asian paints, hul, hdfc twins etc. Also disasters like inefficient psus which get smothered like anything when tide turns in favour of bears…

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