The Grange Resources Ltd (ASX: GRR) share price is thrusting higher in afternoon trade on Monday.
At the time of writing, the mining share is fetching 76 cents apiece, a 2.3% gain on the day after shares had spiked to an early high of 78 cents.
Chief to today's rally appears to be a company update explaining that Grange has been added to the S&P/ASX 300 index (ASX: XKO).
Grange Resources index inclusion
The Standard & Poor's (S&P) Dow Jones Indices announced its quarterly rebalance of the S&P/ASX Indices last Friday.
Several additions and removals were made, with the $856 million company by market capitalisation seeing its shares bolted into the ASX 300.
This places it on the mantlepiece alongside 299 of the largest ASX-listed companies by market value.
Several other inclusion criteria would have been satisfied to register the Grange share price into the index, from factors such as volatility to trading volume.
With its inclusion, the company is likely to see its name on the register of many institutional investment funds that are restricted to investing in ASX 300 shares in their mandates.
What this means for the Grange share price looking ahead, we will find out in time.
However, many of these funds have constraints on the 'turnover' of shares within their portfolios, promoting a long-term view instead. That's something to think about.
Grange Resources share price snapshot
Despite the ratings agency's decision to include Grange into the benchmark, its share price hasn't exactly been performing well over the past few weeks.
After a period of sideways activity, investors turned sour on the share, with sellers pushing Grange from a high of $1.38 on 24 August to today's market price.
Adding to the downside was Grange's half-year results posted on 29 August, where it clipped a decline in both sales and earnings for the period.
The Grange share price is up almost 50% over the past 12 months and is just 0.6% into the green for the year to date.
