REC’s exit from Nifty CPSE sparks selloff

MUMBAI: Shares of REC slumped 14.5 per cent to Rs 137 on Tuesday-its biggest fall since November 2016-after the index maintenance sub-committee of NSE indices decided to exclude the stock from the Nifty CPSE index of state-owned companies.

The move could lead to outflows from the stock of over $100 million though this figure could not be independently verified.

The exclusion of the stock from the index will be effective from July 15. The Index Maintenance Sub-Committee of NSE indices has revised the criteria for eligibility in the index.