MUMBAI: An unusual battle is brewing in the stock market. Its fate will decide who will become the next Nifty50 stock and be counted as part of the elite circle of India’s stock market.

According to brokerage firm

, there are two candidates to be included in the next reconstitution of the premier stock index in the country in October. On one corner is the crown jewel of Radhakishan Damani’s multi-billion dollar empire, Avenue Supermarts. On the other end, is representing the new technology age.

For Avenue Supermarts, the inclusion will solidify its status as one of the most sought after stocks that lit up the capital market after making a blockbuster debut in March 2017. On the other hand, an inclusion for Info Edge India will mark perhaps the beginning of the technology age in India’s capital market as it will become the first Internet age stock in the 50-stock bundle.

The case
According to ICICI Securities, Avenue Supermarts has the highest average free-float market capitalization since the previous review of the Nifty50 in February, which makes it an ideal candidate for inclusion. The stock’s average free float market capitalization was at Rs. 44,237 crore as on Friday.

However, there is a major hurdle in Avenue Supermarts inclusion. All stocks included in the Nifty50 must also be part of the derivatives segment, and the D-Mart stock is yet to be included in the futures and options segment by the National Stock Exchange.

That is also where Info Edge India has an edge over Avenue Supermarts. The stock is already part of the futures and options segment besides having the second-largest free float market capitalization since February. According to ICICI Securities, Info Edge is likely to enter but Avenue Supermarts’ entry will hang on its inclusion in F&O segment before NSE’s index review in September.

Who will make way?
For either Avenue Supermarts or Info Edge to enter the blue chip index an existing member of the index will have to make way.

ICICI Securities believes that

could be the stock to make way, four years after it entered the index. Indian Oil’s average free float market capitalization since February is currently the lowest among Nifty50 stocks, which makes it the preferred stock to be thrown out of the index.

Another stock that may follow Indian Oil out could be Coal India. The stock has the second lowest free float market capitalization in the Nifty50. If excluded, it will conclude a near decade-old existence of the coal sector giant in the index.

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