Axis Bank might replace Satyam in Sensex/Nifty

Its a Black Day for Corporate India with serious damage to the Corporate Governance standards in India. I would not get into the implications of the Satyam fraud since everyone right now is focussed on the same. But one thing which I want to guess is who is going to be the contender for being included in the elite club, I mean, BSE Sensex and Nifty since Satyam’s market cap has been hammered down to Rs 2700crs which is more like a midcap company than a large cap company and the prospects of being merged with another higher. My guess is that Axis Bank and Reliance Capital are the likely replacement for Satyam which has a weightage of 0.62% in Nifty and 1.57% in Sensex. The chances of Axis being included in the Index stocks is more since it has a higher market cap than Rel Cap. But Rel Cap is one of the top traded counter in both the exchanges so on that parameter it scores over Axis. I dont think market cap is one of the parameter in selecting Index stocks as Jaiprakash Associates (Sensex stock) has a market cap of Rs 8400crs which is lower than both Axis and RelCap. Neither earnings (Rel Power).

My only wish is that if there is indeed a replacement for Satyam, I would prefer a stable Axis over wild swinging Rel Cap.

Plz note that these are just plain guesses and what actually turn out might be different from what I say.