NSE removes four Adani Group firms from Nifty Alpha 50 index

National Stock Exchange on Monday removed four Adani Group firms, 10 other firms from its Nifty Alpha 50 index. The excluded Adani stocks are Adani Enterprises Ltd, Adani Green Energy, Adani Total Gas and Adani Transmission.

These changes shall become effective from March 31, 2023 (close of March 29, 2023).

"Nifty Alpha 50 Index aims to measure the performance of securities listed on NSE with high alphas. It is a well-diversified 50 stock index. In order to make the 50 stock index investible and replicable, criteria's such as liquidity and market capitalisation are applied while selection of securities. Nifty Alpha 50 Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products," said NSE about this index on its website. 

The other stocks excluded from the coveted index are ABFRL, Angel One, Elgi Equipments, Fine Organic Industries, Gujarat Narmada Valley Fertilizers and Chemicals, KEI Indusries, Page Industries, SRF, Suzlon Energy, Tata Elxsi. 

The 14 stocks that will replace these are Aditya Birla Capital, Apollo Tyres, Bank of India, BHEL, Britannia, IDFC First Bank, JSPL, L&T Finance Holding, M&M Financial Services, MRF, PFC, PNB, Siemens and Zydus Lifesciences.

NSE has also excluded Adani's cement stocks, Ambuja Cements and ACC, from Nifty Low Volatility 50 index.

Also, Adani Enterprises, Adani Green Energy, Adani Ports, Adani Total Gas, and Adani Transmission got excluded from the Nifty 100 Alpha 30 index. Meanwhile, Adani Enterprises also got excluded from the Nifty 200 Alpha 30 index. Meanwhile, NSE on Monday removed Adani Enterprises Ltd from additional surveillance framework.

Nifty100 Alpha 30 index aims to measure the performance of the top 30 large-cap securities selected based on the alpha score from the Nifty 100 index.

NSE's action against Adani Group stocks comes at a time when there are demands on social media to exclude Adani Enterprises from Nifty 50 due to increased volatility of the scrip post US short seller Hindenburg Research's scathing report against the conglomerate.

Hindenburg Research, in a January 24 report, accused Adani Group of ''brazen stock manipulation and accounting fraud'' and using a number of offshore shell companies to inflate stock prices. The group has denied all allegations, calling them ''malicious'', ''baseless'' and a ''calculated attack on India''.

Following the report, $135 billion in market value has eroded from Adani Group's listed companies.

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