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Nifty re-balancing
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50 companies of Nifty are selected from the universe of NIFTY 100 based on free-float market capitalisation and liquid companies having average impact cost of 0.50% or less for 90% of the observations for a basket size of Rs.10Crores. The constituents should have derivative contracts available on NSE. 
 
The Nifty 50 broad based indices are reviewed twice every year based on six month data ending January 31 and July 31.
 
At the time of index reconstitution, a company which has undergone a scheme of arrangement for corporate event such as spin-off, capital restructuring etc. would be considered eligible for inclusion in the index if as on the cut-off date for sourcing data of preceding six months for index reconstitution, a company has completed three calendar months of trading period after the stock has traded on ex. basis subject to fulfilment of all eligibility criteria for inclusion in the index.  
 
The NIFTY Indices are computed using a float-adjusted weighted market capitalization methodology. The methodology also takes into account constituent changes in the index and corporate actions such as stock splits, rights issuance, etc., without affecting the index value. 
 
Based on Jan data so far, following changes are expected in Nifty effective from April expiry start:
 
Likely exclusion from Nifty : HPCL (High Probability) and Bharti Infratel (Low probability)

Likely Inclusion in Nifty : Britannia (High Probability) and Godrej Consumer (Low probabilty)

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