Should you buy stocks newly added to the NIFTY

From April 2nd, 2018, the NIFTY will look different. Bajaj Finserv, Grasim Industries, and Titan Company will be included and Ambuja Cements, Aurobindo Pharma, and Bosch will be excluded. [link] This is not a rare or ad-hoc phenomenon, but a semi-annual ritual conducted by the organization that owns the NIFTY index, the National Stock Exchange, effective every April and September. Here’s what the index methodology document says about index reconstitution: The index is reconstituted semi-annually considering 6 months data ending January and July respectively. The replacement of stocks in NIFTY 50 (if any) is generally implemented from the first working day after F&O

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The complete list of 2018 stock recommendations

When I started investing in equities, I used to be in awe of equity research reports. Immaculately formatted 5-page documents with their glossy charts and tables of financial projections followed by a confident Buy / Sell / Hold recommendation based on a precise target price. I figured those target prices were arrived at by hardcore sector experts working with proprietary excel models of such complexity they would probably crash any computer with conventional specifications. That awe lasted until I realized the “models” in use might as well have been random number generators due to their sensitivity to assumptions about an unknowable

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