Shriram Fin may oust UPL from Nifty, Canara may replace Bandhan in Bank Nifty

Shriram Finance (SFL) could replace UPL on the Nifty 50 index while Canara Bank is likely to replace Bandhan Bank on the 12 constituent Bank Nifty index at the semi-annual review of Nifty indices, which will take effect on 31 March.

The inclusions could attract net inflow of $245 million to the SFL counter and a net inflow of $36 million to Canara Bank from domestic institutions and insurance companies. UPL could also see outflows of $107 million and Bandhan Bank of $39 million, said Abhilash Pagaria, head of quantitative research at Nuvama Wealth, in a note.

UPL and Bandhan after likely exclusions will remain on the broader market Nifty 500.

The official announcement is expected by February end, but Pagaria expects "significant activity" at the stock counters in coming sessions.