NMDC to be excluded from Nifty CPSE index over move to hive off steel arm

NMDC shares drop 5.3%; ONGC, Coal India and Bharat Electronics likely to see inflows of $31-46 million on account of the rebalancing

State-owned miner NMDC will be removed from the Nifty CPSE index following its decision to hive off its steel subsidiary NMDC Steel. The proposal has received shareholder’s approval.

According to an analysis done by IIFL Alternative Research, NMDC, which has nearly 5 per cent weightage in the Nifty CPSE index, could see outflows of over $100 million (nearly Rs 800 crore) on account of its exclusion. No new stock will get added to the index as a result, some of the existing members of the CPSE index will benefit due to the rebalancing.