Cairn, Idea to Join Nifty from 12th Dec 2007

It is going to be a fifth change this calendar year and eighth in two years. Cairn India and Idea Cellular are going to replace HPCL and MTNL respectively on the 12th of December 2007. The announcement wad done on 30th Oct. Nifty considers market cap directly unlike Sensex that considers free float market cap. The market cap is going to go up from Rs 33.7 lakh cr to Rs 34.2 lakh cr due to the inclusions. The wieghtage of Cairn will be 1.1% and that of Idea will be 1% in contrast to the weightage 0.3 for HPCL and MTNL. The increase of weightage of new constituents will reduce the weightage of other stocks by 1.5%. RIL that contributes 12.17% to Nifty will not contribute only 12%, down 17 bps. ONGC's contribution will decrease by 11 bps while that of NTPC will decrease by 9 bps.