Private insurer HDFC Life Insurance Co. Ltd. will replace Vedanta Ltd. in the NSE Nifty 50 index on account of the voluntary delisting proposed by the Anil Agarwal-led company, the National Stock Exchange said on Thursday.
The change will be effective July 31. The replacement will also be applicable to Nifty 50 Equal Weight Index.
The private insurer, according to Edelweiss Research, is likely to see an inflow of nearly $100 million with a weight of 99 basis points because of the rebalancing of index funds. Vedanta, with a 47-basis-point weight, is expected to see an outflow of $47 million after the rejig, it said.
But Vedanta is moving ahead with its delisting plan. Parent Vedanta Resources Plc. is seeking to increase a planned $2.5 billion loan by $250 million to help it advance the decision, Bloomberg reported on June 30, citing people familiar with the matter.
The plan to delist was approved by the company's board on May 18.
On Thursday, HDFC Life shares fell 0.23% to Rs 548.40 apiece on NSE while Vedanta's stock declined 0.88% to Rs 106.75. The benchmark Nifty 50 rose 1.71% to end the day at 10,551.70 points.
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