Shares of state-owned Bharat Electronics, the newest entrant to the Nifty 50, slipped into the red on its debut trading day after joining the benchmark index.
Bharat Electronics, along with retail major Trent, replaced Divis Laboratories and LTIMindtree in the benchmark Nifty 50 on September 27. The counters will have a weight of 1.4 percent and 0.9 percent respectively, according to Nuvama Institutional Equities.
The inclusion into the benchmark of Bharat Electronics is likely to bring in combined flows of $336 million, according to estimates by Nuvama Alternative & Quantitative Research.
At 10:55 am, shares of the company were trading at Rs 285.3, lower by 2.8 percent from the last close on the NSE.
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The defense PSU also received approval from the Ministry of Corporate Affairs for the incorporation of "BEL IAI AeroSystems Private Limited". This is a JV between Bharat Electronics and Israel Aerospace Industries.
The purpose of the JV is to provide product support including repair and maintenance and related activities for Medium Range Surface to Air Missile (MRSAM) System which is deployed and used in India, said the firm in an exchange filing on September 27.
On September 25, international brokerage Macquarie dished out an 'outperform' rating on Bharat Electronics and raised the target price citing robust growth prospects.
The company remains on track to meet its FY25 guidance, with attention now shifting to order inflows in the second half of the fiscal year, Macquarie said in a recent note. Analysts also added that BEL’s current order backlog is expected to support growth trends, though supply chain challenges must be closely monitored. Key updates to watch in the post-Q2 management commentary will include the status of pipeline orders and supply chain developments.
Shares of Bharat Electronics have seen a stellar rally over the past 12 months, surging 105 percent and more than doubling investors' capital. In comparison, the Nifty 50 has risen around 34 percent during the same time.
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