Bengaluru, Aug. 25 -- The Nifty indices are extremely important in the Indian stock market. Many large investors, mutual funds, and ETFs track these indices, so any addition or removal of a stock causes significant market movements. The changes in the Nifty 50 and Nifty Next 50 indicate which companies are gaining strength and which are losing ground.

What is Nifty Rejig? A Nifty rejig is simply the reordering of stocks in the Nifty 50 index. The NSE reviews the list of top 50 companies twice a year (March and September) and determines which stocks to add or remove.

The NSE decides which stocks are included in the Nifty 50 index by considering their average free-float market capitalisation over a six-month period. Free-float market capi...