Can the technically oriented people on this forum, if any, comment on how much impact a company’s inclusion in a major index like Nifty50 likely to have on the incremental buying that must be done by the index ETFs for the new entrant and what impact is it likely to have on the stock price? I ask this because it seems to me that that as of Jan23, the least market cap companies in Nifty50 have market cap ~54,000 crores so if PFC reaches a market cap of ~55,000 crores (corresponding to a PE of only ~3 and PB of only about 0.72) then its likely to be included in the Nifty50 index. Given that the market cap is ~42,000 crores as of this writing and the low PE and PB prevailing currently, it seems quite plausible that there is some relatively small PE or PB improvement that could result in PFC entering the Nifty50 index.
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