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Market Intelligence › Basic Terminologies
Mechanism of inclusion and exclusion, and volume of us day
Published by The Retail Trader · AUG 06, 2026 · Market Structure
The index list is not fixed. In periodic review, some companies come in and some go out. Us change day is an extraordinary day in us stock.
Every index has its own criteria — market cap, liquidity, listing history. In review, a list is again prepared based on criteria.
Every index fund has to buy the stock that comes in. Whoever goes out has to sell every index fund. This is a necessity, not a choice.
Due to this compulsion this pattern is formed:
• Between the announcement and the effective date the price often moves higher first.
• How is volume compared to normal on effective date?
• Us day's closing price is that where funds have to match.
• That extra demand or supply ends in the subsequent halfton.
The index doesn't say anything about a company's business — it's just a result of size and liquidity. To take a position by demanding a quality certificate is to completely misunderstand the logic of inclusion.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.