Adani Enterprises, the flagship company of billionaire
Gautam Adani-led Adani Group, will be added to the National Stock Exchange’s
benchmark index Nifty 50 from September 30. Adani Enterprises will replace
Shree Cement Ltd on the index, the NSE said, adding that the changes are part
of its periodic review. This would be the second stock from the Adani Group to
be included in the Nifty, after Adani Ports and Special Economic Zones (APSEZ).

Shares of Adani Enterprises rallied over 88% so far this
year, while that of Shree Cement plunged 21% during this period. Today, the
Adani stock hit a record high of 3,352.35, gaining 3.61% on the NSE, while
Shree Cement fell 1.69% to 21,226.40.

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Shree Cement is the leading cement-making firm, owning
brands such as Roofon, Bangur Power, Shree Jung Rodhak, Bangur Cement, and

The inclusion of Adani Enterprises on the Nifty 50 could
result in a net inflow of around $213 million for the stocks counter, while
Shree Cements will see an outflow of $87 million, according to Edelweiss

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The development comes at a time when the group company is
“deeply overleveraged” and is several investments in capital-intensive
businesses could pose long-term risks to investors, said Fitch Group’s debt
research unit CreditSights

The Index Maintenance Sub-Committee – Equity (IMSC) of NSE
Indices Limited has decided to make the changes as a part of its periodic
review, a release said on Thursday.

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As a part of its periodic review, NSE has also made changes
to various indices including Nifty Next 50, Nifty 500, and Nifty 100. The
exchange has added stocks such as Adani Total Gas Ltd, Bharat Electronics Ltd,
Hindustan Aeronautics Ltd, Indian Railway Catering and Tourism Corporation Ltd,
Mphasis Ltd, Samvardhana Motherson International, and Shree Cement Ltd in its
Nifty Next 50.

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Adani Enterprises, Jubilant Foodworks, Lupin, MindTree Ltd,
Punjab National Bank, Steel Authority of India Ltd, and Zydus Lifesciences will
be removed from the Nifty Next 50 index.

These changes will become effective from September 30,