Shares of HDFC Life Insurance surged 7.61 per cent in Friday’s intra-day trade, a day after it was announced that the company will be included in the list of Nifty 50 index of the National Stock Exchange (NSE). The HDFC Life Insurance stock hit an intra-day high of Rs 589.65 on BSE in mid-day trade, soaring from the previous closing mark of Rs 547.95. At closing the shares of HDFC Life Insurance pared some of the gains and were priced at Rs 576, up 5.12 per cent.
On Thursday, the Index Maintenance Sub-Committee (IMSC) of the NSE released the list of changes to be incorporated in various indices. According to the release, Vedanta Limited which has proposed for voluntary delisting, will be excluded from the ‘Nifty 50’ index and will be replaced by HDFC Life Insurance. SBI Cards and Payment Services will replace HDFC Life in ‘Nifty Next 50’.
HDFC Life Insurance will be the third company from the HDFC group which will feature in the Nifty50. Housing Development Finance Corporation (HDFC) and HDFC Bank are currently in the benchmark index.
The changes in the indices will be incorporated on 31 July.