NSE Index Rejig: Trent, Bharat Electronics enter Nifty 50; Divi's Labs, LTIMindtree exit

The National Stock Exchange ( NSE ) is set to witness significant changes in its benchmark Nifty 50 index on September 27 as Bharat Electronics Limited (BEL) and Trent make their debut, replacing Divi's Laboratories and LTIMindtree. These changes come as part of the NSE Indices' semi-annual review, conducted by the Index Maintenance Sub-Committee (Equity), which periodically reassesses broad market indices.

The inclusion of BEL and Trent is based on their strong market performance and eligibility for trading in the NSE ’s Futures & Options (F&O) segment, a prerequisite for inclusion in the Nifty 50 index.

Trent, with an average free-float market capitalisation of Rs 99,364 crore, and Bharat Electronics, with Rs 89,317 crore, have surpassed the criteria for inclusion. Their six-month average free-float market capitalisation is at least 1.5 times larger than that of LTIMindtree and Divi’s Laboratories, which recorded Rs 47,022 crore and Rs 51,261 crore, respectively, leading to their exclusion from the index.

The inclusion of Trent and BEL is expected to attract passive inflows of $702 million and $430 million, respectively, into the Nifty 50. According to estimates by Nuvama Institutional Equities, Trent will hold a weight of 1.4 per cent in the index, while BEL will account for 0.9 per cent.

Additionally, other shifts in the Nifty 50 index during this review include an anticipated rise in the weightage of Cipla and HDFC Life. In contrast, major players like Mahindra & Mahindra, Infosys , ICICI Bank , Reliance Industries, Adani Enterprises, HDFC Bank , Bharti Airtel, Hindustan Unilever , Kotak Mahindra Bank, and Axis Bank will see their index weights decrease.

In the Bank Nifty index, Canara Bank is set to replace Bandhan Bank, marking its entry into the prestigious banking index. Meanwhile, the weightage of banks such as SBI , Federal Bank, Bank of Baroda, and AU Bank is expected to rise, while Kotak Mahindra Bank and HDFC Bank will see a reduction in their weights.

Post their exit from the Nifty 50, Divi's Laboratories and LTIMindtree are set to join the Nifty Next 50 index alongside companies such as JSW Energy, Lodha, BHEL , NHPC, and Union Bank. Trent and BEL, meanwhile, will leave the Nifty Junior index as they graduate to the Nifty 50, while Colgate-Palmolive, Marico, SRF, SBI Card, and Berger Paints will exit the Junior index.