Research Analysts Research [email protected] PatelNandish [email protected] Gupta Amit Nifty: One of the biggest re Quant Thematic [email protected] Dedhia Dipesh [email protected] Singh Deepak Raj - balancing likely - April April 24, 2020 • • PRODUCT 1 PRODUCT 2

ICICI Securities – Retail Equity Research April 24, 2020 April 24, Stocks likely to be excluded from Source: Bloomberg, ICICI Direct Research Direct ICICI Bloomberg, Source: the The The four be As Hence, 50 the In . the excluded per next In index) combined likely replacements above the our there couple average first may analysis, . list, is We weight rebalancing room be of stocks believe months price if changed the stocks for of with average has these further at . We least from of been in lowest GAILIndia MotorsTata EntertainmentZee Ltd Vedanta BhartiInfratel Stock * * this four Average Free Float Market Cap a have changes three the free calendar arrived year, excluded free tried replacement Stocks likely to move out from Nifty fromlikely out move Stocks to float out float already Automobile up at to Telecom Oil&Gas Metals year Sector of Media market ICICI Ltd. Securities Retail| Equity Research considering consider to the stocks market . four Hence above one group Avg Price Avg cap 113.11 190.74 197.96 96.27 99.87 Nifty stocks is As on As 22nd Apr cap the stock of likely in five remain the highlighted best CY are in Avg FCAPAvg stocks 17802 20266 17405 18191 16843 Yes to recent 20 the shown possible be , resilient maximum Bank next nearly could sharp . Avg Price Avg stocks Maximum announcement was 100 100 195 185 95 Expected31 July till cases . 1 be decline . 5 of excluded % is replaced for five likely in Avg FCAPAvg 10 18492 17916 17793 17304 15740 these the in stocks % stocks to . Nifty in expected of It remain stocks the the was . can along next index replaced be as low in rebalancing per replaced with . September size Hence, our expected (number with view from they Shree . . There 2020 are of recovery the . stocks Cement likely may pool be of to in in . 2

ICICI Securities – Retail Equity Research April 24, 2020 April 24, Stocks likely to be Source: Bloomberg, ICICI Direct Research Direct ICICI Bloomberg, Source: Combined the In could without In largest segment One case such Nifty of also among the DMart . F&O a . If scenario, be weights criteria it contracts part does gets the and albeit replacement for of an not SBI Divis upcoming F&O inclusion then get Life with included in Nifty Pidilite SBILife Dabur HDFCLife DivisLab DMART Stock Lab, contract included these are a lower HDFC pool, Stocks likely includedNiftyinbe Stocks to almost in stocks four FMCG Insurance FMCG Insurance Pharma Retail Sector the in probability it in Life, the Nifty will stocks is at F&O, ICICI Ltd. Securities Retail| Equity Research likely par next Dabur not Avg Price Avg is then 1484 2087 2198 as 787 479 512 could As on As 22nd April that be to couple if per be a and it it security part outperforms Avg FCAP*Avg be our 2 will 22619 29124 27073 29941 26595 32747 . of 9 SBI part % of calculation not months, in the Life must of the be Avg Price Avg Nifty Nifty could 1450 2150 2100 670 470 460 Expected31 July till added Nifty the have then . . . Relative rest The be against F&O along in Avg FCAP*Avg in part next 22098 24790 26577 26923 27396 31288 the coming contract outperformance with outgoing of Nifty close the it . months Divis . In contender Nifty As such stocks of Lab, . . Hence, now, a will weightage HDFC scenario, is DMart be Pidilite in key Life case . is despite of should Industries, not DMart just part 1 be being . 5 remains % of part which . F&O the of 3

ICICI Securities – Retail Equity Research April 24, 2020 April 24, composition Nifty: Expected rebalancing to change Nifty sectoral Source: Bloomberg, ICICI Direct Research Direct ICICI Bloomberg, Source: stocks, regarding The will profound The be Nifty whole the we has in inclusion biggest believe exercise stocks shed reshuffle there almost with and is a a will exclusion bit few 40 seen be % interesting of Media Others Cement Power Metals Infra Consumption Telecom Pharma Automobile NBFC FMCG Oil&Gas Technology Banking Sector in some in them just recent from definite two having Noof Stocks considering ICICI Ltd. Securities Retail| Equity Research the months history index changes fallen 1 2 3 2 5 1 2 2 3 6 3 4 5 5 6 CumulativeCurrent weighatge . Perhaps from . However, three in its the than January we months upcoming may 11.14 13.10 13.96 25.53 considering 0.32 1.06 2.26 2.38 2.55 2.87 3.12 3.36 3.47 4.93 9.95 50 % highs Noof Stocks see . are We review a still change amid believe 0 4 3 2 4 1 2 1 4 5 3 5 5 5 6 the Cumulativeweighatge left . global significant before of the four upcoming weakness 11.81 13.64 13.65 24.94 0.00 2.11 2.20 2.29 2.42 2.71 2.89 3.13 4.06 4.53 9.62 any stocks declines announcement in . Nifty The the in sharp upcoming review some decline in will of September review the be is made index more . 4

ICICI Securities – Retail Equity Research Apr-13 Apr-13 Sep-12 Sep-12 Sep-12 Sep-12 Apr-12 Apr-12 Apr-12 Apr-12 Oct-11 Oct-11 Mar-11 Mar-11 Date Sep-14 Sep-14 Mar-14 Mar-14 Mar-14 Mar-14 Sep-13 Sep-13 Apr-13 Apr-13 April 24, 2020 April 24, Appendix: Nifty Historical Changes in Nifty Index Niftyin Changes Historical Source: Bloomberg, ICICI Direct Research Direct ICICI Bloomberg, Source: Zee Entertainment Zee EnterprisesLtd. UnitedSpirits Ltd. UnitedSpirits Ltd. MahindraTechLtd. LaboratoriesRanbaxyLtd. Ltd. JaiprakashAssociates RelianceInfrastructure Ltd. WiproLtd. WiproLtd. Ltd. Ltd. NMDC IndusIndLtd. Bank SterliteIndustries () Ltd. AuthoritySteel India of Ltd. UltraTechLtd. Cement LupinLtd. Ltd. ReliancePower RelianceCommunications Ltd. Baroda of Bank Ltd. RelianceCapitalLtd. IndiaCoal Ltd. EnergySuzlonLtd. GrasimIndustries Ltd. Stock changes in last decade Inclusioninto Index ExclusionIndexfrom Inclusioninto Index Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index Inclusioninto Index ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom Inclusioninto Index Description ICICI Ltd. Securities Retail| Equity Research Sep-17 Sep-17 Sep-17 May-17 May-17 Mar-17 Mar-17 Mar-17 Mar-17 Apr-16 Apr-16 Apr-16 Apr-16 Apr-16 Apr-16 Apr-16 Sep-15 Sep-15 May-15 May-15 Mar-15 Mar-15 Mar-15 Mar-15 Date Ltd DVR Ltd MotorsTata Baroda of Bank ACCLtd. Ltd. Vedanta GrasimIndustries Ltd. IndianOil Corporation Ltd. IndiabullsHousing FinanceLtd. IdeaCellularLtd. ElectricalsBharatHeavy Ltd. DVR Ltd MotorsTata EicherLtd. Motors BhartiInfratel Ltd. AurobindoLtd. Pharma Ltd. Vedanta NationalPunjabBank CairnIndia Ltd. Adani Ports Ltd. NMDC Ltd. Bosch IDFCLtd Ltd. Bank Yes IdeaCellularLtd. Ltd.Jindal &Power Ltd. DLF Stock ExclusionIndexfrom ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom Inclusioninto Index Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index Inclusioninto Index Inclusioninto Index Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom Inclusioninto Index Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom Description Mar-20 Mar-20 Sep-19 Sep-19 Mar-19 Mar-19 Sep-18 Sep-18 Apr-18 Apr-18 Apr-18 Apr-18 Apr-18 Apr-18 Sep-17 Sep-17 Sep-17 Sep-17 Date Shree Ltd. Bank Yes India Nestle IndiabullsHousing FinanceLtd. Britannia HindustanCorporationPetroleum Ltd. Ltd. Steel JSW LupinLtd. TitanCompanyLtd. GrasimIndustries Ltd. BajajLtd. Finserv Ltd. Bosch AurobindoLtd. Pharma AmbujaLtd. Cements Ltd. UPL HindustanCorporationPetroleum Ltd. BajajFinanceLtd. Ltd. Co. Power Tata Stock Inclusioninto Index ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom Inclusioninto Index ExclusionIndexfrom Inclusioninto Index Inclusioninto Index Inclusioninto Index ExclusionIndexfrom ExclusionIndexfrom ExclusionIndexfrom Inclusioninto Index Inclusioninto Index Inclusioninto Index ExclusionIndexfrom Description 5

ICICI Securities – Retail Equity Research April 24, 2020 April 24, Source: Bloomberg, ICICI Direct Research Direct ICICI Bloomberg, Source: Pankaj Pandey [email protected] (East) Andheri Road no.7, MIDC 1 Limited,Securities ICICI Desk,Research Direct ICICI Head st Floor, AkrutiTrade Centre, ICICI Ltd. Securities Retail| Equity Research – Research – 400 400 093 [email protected] 6

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