Bharat Electronics, Trent to replace Divis Labs, LTIMindtree in Nifty 50 from September 30

NSE Nifty Rejig

Bharat Electronics and Trent will replace Divis Laboratories and LTIMindtree in the benchmark Nifty 50. The replacement in Nifty 50 will also be applicable to Nifty50 Equal Weight index.

The Index Maintenance Sub-Committee (Equity) of NSE Indices has decided to make the changes in various Nifty equity indices as a part of the semi-annual review of broad market indices. These changes will become effective from September 30.

Only stocks that are available for trading in NSE’s Futures & Options segment are eligible for inclusion in the Nifty 50 index.

"Trent with average free-float market capitalisation Rs 99,364 crore and Bharat Electronics with average freefloat market capitalisation Rs 89,317 crore have been included in Nifty 50 index as the 6-month average free-float market capitalisation of these companies within eligible universe is at least 1.5 times the 6-month average free-float market capitalisation of the smallest constituents i.e. LTIMindtree with average free-float market capitalisation Rs 47,022 crore and Divi's Laboratories with average free-float market capitalisation Rs 51,261 crore respectively," NSE said.

However, the National Stock Exchange did not consider the next two eligible companies, namely, Hindustan Aeronautics (average freefloat market capitalisation of Rs 77,170 crore) and Tata Power Company (Rs 70,878 crore) for inclusion in Nifty 50 index. Explaining why, the exchange said, "The average free-float market capitalisation of two Nifty 50 constituents with lowest average free-float market capitalisation (after exclusion of two companies - Divis Labs and LTIMindtree - in Nifty 50) was less than 1.5 times the 6-month average free-float market capitalisation namely Bharat Petroleum Corporation (Rs 59,958 crore) and Eicher Motors (Rs 60,220 crore)."

Bharat Heavy Electricals (BHEL), Divis Laboratories, JSW Energy, LTIMindtree, Macrotech Developers, NHPC, and Union Bank of India will replace Berger Paints India, Bharat Electronics, Colgate Palmolive (India), Marico, SBI Cards and Payment Services, SRF, and Trent in the Nifty Next 50 index.

The exchange said Bharat Electronics and Trent have been removed from the Nifty Next 50 index due to inclusion in Nifty 50 index, while Berger Paints India, Colgate Palmolive (India), Marico, SBI Cards and Payment Services and SRF have been removed from Nifty Next 50 due to exclusion from Nifty 100 index (a parent index for Nifty Next 50).

The Index Maintenance Sub-Committee (Equity) of NSE Indices also announced rejig in other indices including Nifty 500, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250, Nifty Midcap Select, Nifty Midcap 50, Nifty Midcap 100, Nifty Smallcap 50, Nifty Smallcap 100, Nifty 200, Nifty LargeMidcap 250, Nifty MidSmallcap 400, and Nifty Microcap 250.

The exchange also announced a rejig in the sectoral indices including Nifty Bank wherein Canara Bank is going to replace Bandhan Bank, and Indian Railway Finance Corporation will be included in the Nifty Financial Services Ex-Bank index, in place of One 97 Communications (Paytm).

In the Nifty Pharma index, Ajanta Pharmaceuticals will be included and Sanofi India will be excluded, while Raymond will replace Sunteck Realty in the Nifty Realty index.

Replacements will also take place in Nifty MidSmall Financial Services, and Nifty MidSmall IT & Telecom. "No changes are being made in Nifty Auto, Nifty Consumer Durables, Nifty Financial Services, Nifty Financial Services 25/50, Nifty IT, Nifty FMCG, Nifty Media, Nifty Healthcare, Nifty Metal, Nifty Oil & Gas, Nifty Private Bank, Nifty PSU Bank, and Nifty MidSmall Healthcare indices," the NSE said.

In thematic segment, the exchange has made changes in Commodities, Core Housing, Energy, EV & New Age Automotive, Housing, India Consumption, India Defence, India Digital, India Manufacturing, India Tourism, Infrastructure, MNC, Mobility, PSE, and Rural indices, while the replacements have also taken place in the Corporate Group indices - Aditya Birla Group, Mahindra Group, and Tata Group.

In the EV & New Age Automotive index, ZF Commercial Vehicle Control Systems India will replace Minda Corporation, while in India Digital index, Tata Technologies will be included, in place of Vodafone Idea.

Apart from the above changes, the exchange has also announced exclusion of Tata Motors ‘A’ Ordinary Shares - DVR from 14 indices including Nifty 100, Nifty 200, Nifty 500, Nifty Auto, Nifty Mobility, Nifty Transportation & Logistics, and Nifty India Corporate Group Index - Tata Group.

This was due to the announcement of record date (September 1, 2024) by Tata Motors for implementation of scheme of arrangement. The scheme of arrangement involves reduction of capital of Tata Motors by way of cancellation of the entire ‘A’ Ordinary Shares (shares with differential voting rights) and issuance Ordinary Shares as consideration for such reduction of capital, the exchange said.

Consequently, the equity shares and investible weight factor (IWF) of Tata Motors will be revised based on the terms of shares exchange ratio effective August 30 and will be reflected in the indices that are computed based on market capitalisation methodology.