Divi's hits all-time high

The NIFTY 50 is the flagship index on the NSE. The Index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. It includes 50 of the approximately 1600 companies traded (listed & traded and not listed but permitted to trade) on NSE, captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market.

For a stock to qualify for inclusion in the NIFTY 50, it has to reliably have market impact cost below 0.50 %, when doing NIFTY 50 trades of Rs.10 crore. The index is reconstituted semi-annually considering 6 months data ending January and July respectively.

And today, stock have been added and two deleted in this rejig. Divi’s Labs and SBI Life Insurance will enter the benchmark index Nifty50 from September 25, 2020. On the other hand, Bharti Infratel and ZEEL will be dropped.

Following this news,  Divi's Laboratories hit an all-time high of Rs 3,331 in the early trade, up nearly 4.5%. SBI Life is currently at Rs.880 but before this, it had hit an intraday high at Rs.889.

ZEEL is down 2% while Bharti Infratel by just 0.5%.