Trent, BEL may enter Nifty 50; Divi's, LTIMindtree may exit in September: JM Financial

Bank Nifty might also see certain changes, as Canara Bank might make an entrance.

Retail major Trent and public sector firm Bharat Electronics might join the Nifty 50 index, while Divi's Laboratories and LTIMindtree could be excluded from the benchmark, a JM Financial note said on August 23.

The NSE committee overseeing the matter is set to meet after market hours on August 23 for a periodic review of stocks across the CNX Nifty indices.

Based on JM Financial's analysis, the inclusion of Trent and BEL in the key index might bring in combined inflows of $917 million, while the exclusion of IT player LTIMindtree and pharma major Divi's Labs will lead to combined outflows of $426 million, based on passive funds that track Nifty 50.

Follow our live blog to catch all the updates

For the September rebalancing, the index provider has considered the average free float market capitalisation between February 1 to July 31. JM Financial too has based its expectations on the average free float market cap that prevailed between the period.

Based on the average free float market cap criteria, Jio Financial and Zomato are eligible to enter the index, instead of Trent and BEL, but it is unlikely, the JM Financial note said. "They are not likely to be included in the Nifty as they are not a part of the F&O segment," the note added. Any announcement of inclusion of these two counters in the F&O segment by tomorrow could lead to their inclusion in the Nifty as well, but there is low probability for that to happen.

Under such a scenario, the brokerage said it would expect the following changes:
Inclusions: Jio Financial Services, Zomato and Trent
Exclusions: LTI Mindtree, Divi's Laboratories and BPCL

Bank Nifty might also see certain changes with Canara Bank likely making an entry into the index, while Bandhan Bank could exit.

The brokerage note foresees no changes to the Nifty IT index as of now.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.