Dr. Reddy's & Bajaj Auto Re-enter the NSE's S&P CNX Nifty

Dr. Reddy's Laboratories and Bajaj Auto are to re-enter the NSE's S&P CNX Nifty from 1 October 2010. The pharma major, Dr. Reddy's Laboratories was excluded from Nifty in September 2008 and Bajaj Auto lost its Nifty tag in March 2008. Previously, Reliance Power replaced Dr. Reddy's Lab in Nifty and Bajaj Auto was replaced by PowerGrid Corporation. Sesa Goa, the other company that was excluded re-entered Nifty. According to the India Index Services & Products Ltd — a joint venture of NSE & Crisil, the three companies replaced stocks of ABB, Idea Cellular and Unitech.

Liquidity (impact cost) and floating stock determine selection of stocks in S&P CNX Nifty. S&P CNX Nifty has adopted free-float methodology from June 2009 in place of market-cap weightage methodology. The shift in methodology indicates that weightage of a stock in the Nifty would be proportional to the public shareholding (non-promoter holding) in that company.