Pidilite may miss out on Nifty 50 inclusion post index rebalancing

The stock was widely expected to get added to the index, but does not have enough free float market cap to dislodge BPCL

Pidilite Industries is unlikely to get added to the benchmark Nifty 50 index during its rebalancing exercise in March. The stock—currently the highest ranked non-index constituent—was widely expected to get added to the index.

“With only five trading days to go in the review period, we see no constituent changes to the Nifty Index at the March rebalance. Pidilite’s free float market cap does not exceed 1.5 times the free-float market cap of Bharat Petroleum Corp (BPCL),” said analyst Brian Freitas of Periscope Analytics, who publishes on Smartkarma.

"BPCL is currently the lowest-ranked index constituent with an average free float market cap of Rs 31,783 crore. A non-Nifty stock to dislodge it would require to have an average free float mcap of at least Rs 47,674 crore. Pidiltie’s average free float mcap during the review period stood at Rs 40,391 crore, according to calculations by Freitas.