United Spirits shares fell nearly 3 per cent on Thursday on news that the stock will move out of the bluechip Nifty index. United Spirits will be replaced by Zee Entertainment, which jumped as much as 4 per cent in early trade.
United Spirits shares came under pressure as index benchmark funds, which invest in stocks according to their weightage, will shed investment in the stock.
The National Stock Exchange’s India Index Services (IISL) on Wednesday said Zee Entertainment will replace United Spirits in the 50-share Nifty from September 19.
IISL stated that this change was part of its periodic review and it did not attribute a specific reason for this.
Zee Entertainment’s weightage is expected to be 58 basis points, slightly higher than United Spirits’ weightage of 46 bps, analysts say.