Kolkata-headquartered cement maker Shree Cement rallied 6% to Rs 25,222.90 on Wednesday as the company, which will replace Yes Bank in the Nifty 50 from 27 March, attracted buying interest.
Funds tracking the Nifty 50 index are expected to buy shares of Shree Cement, the country’s second largest cement maker by market capitalization. It would be the second core cement company to be part of Nifty 50 after Ultra Tech Cement.
In the last one year, shares of Shree Cement rose more than 55%, while the benchmark Nifty gained 13%.
National Stock Exchange has decided to allow derivative contracts in such stocks which meet the enhanced eligibility criteria.
Under the new criteria, companies should be a part of Nifty 500 at the time of review.
In case the number of eligible stocks representing a particular sector within Nifty 500 falls below 10, the deficit number of stocks shall be selected from the universe of stocks ranked within top 800 based on both average daily turnover and average daily full market capitalization based on previous six months period data used for the index.
Last week, Shree Cement posted a 3% rise in its net profit at Rs 309.95 crore in the quarter ended December helped by drop in fuel and other input costs.
Its net revenue stood at ₹2,848.34 crore, up 2% from the year-ago period. The company said cement sales went up 6% to 5.98 million ton from 5.64 million ton recorded in the corresponding quarter of the previous year
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