Indian Oil (IOC) shares plunged over 7 percent on Monday after the Index Maintenance Sub-Committee (IMSC) of NSE Indices Limited decided to exclude the country's flagship oil company from the Central Public Sector Enterprises (CPSE) index. Further, sell flows in IOC can be seen to the tune of Rs 1,950 crore, reported CNBC-TV18, citing people aware of the development.

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On the Bombay Stock Exchange (BSE), IOC shares fell as much as 7.25 percent to an intraday low of Rs 113.75 apiece. On the National Stock Exchange (NSE), IOC shares declined to Rs 113.70 apiece intraday, down 7.29 percent.

At 9:58 am, IOC shares traded 3.79 percent lower at Rs 118 apiece on the BSE. The benchmark Sensex index was 0.18 percent down at that time.

Apart from IOC, Power Finance Corp (PFC) will also be excluded, while Cochin Ship, NHPC, NMDC and Power Grid will be included in the index. These changes will become effective from January 24, 2020 (close of January 23, 2020), the IMSC of NSE Indices said in a release on Friday.

Nifty CPSE Index is constructed in order to facilitate government’s initiative to disinvest some of its stake in selected CPSEs. The government opted for the exchange-traded fund or ETF route for disinvestment.

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