2 Stocks to Watch

Probable Nifty 50 Inclusions

Which are the two stocks that an investor should keep in radar as they are the probable contenders
of Nifty 50 inclusion?

Introduction:

Edelweiss group has done a research for the stocks which can be included in the Nifty 50 index till
September 2021. The two companies are Avenue Supermart (D-Mart) and Info Edge, there are
various benefits as well to be included in the Nifty 50 index which we will discuss as we move ahead.

The two stock which can be included in Nifty 5 are:

1. Avenue Supermart (D-Mart):

 The company already has a market cap which is sufficient to enter the Nifty 50 segment
but according to the norms, the Free-Float capitalisation was low.
 Now the promoters have started reducing their stake in the company to increase the
market cap.
 Additionally, a company should also be a part of Derivatives Segment. Which according to
the report, can be fulfilled by the end of August.
 The expected weightage of the stock in Nifty 50 can be 0.72%.

2. Info edge:

 According to the reports, the market cap of Info Edge is going to be 1.5 times of the last
company in the Nifty 50 segment.
 This stock can also be added by September 2021 in the Nifty 50 index.
 The expected weightage of the stock in Nifty 50 can be 0.55%.

Benefits of inclusion in the Nifty 50 index:

 The passive funds which allocates their capital to Nifty 50 only will start flowing their capital
in these stocks according to their weightage.
  The inflows expected in Avenue Supermart can be around Rs. 1,050 Cr. and in Info Edge
around Rs. 800 Cr. from the passive index funds as well as other index funds.

Conclusion:

Both the companies are trading at a premium valuation in the stock market. The aggressive investors
can look for these stocks to add in the portfolio as the volatility is on the higher side. One should do
a proper research before investing.