NSE Index Rejig: Trent, BEL to enter Nifty 50 today; Divi's Labs, LTIMindtree excluded

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Bharat Electronics and Trent will replace Divis Laboratories and LTIMindtree in the benchmark Nifty 50 on September 27. The two Nifty 50 entrants will be replacing pharma player Divi's Laboratories and IT major LTIMindtree, which have been excluded.

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.

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 of Rs 99,364 crore and Bharat Electronics with average freefloat market capitalisation of 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 of Rs 47,022 crore and Divi's Laboratories with average free-float market capitalisation of Rs 51,261 crore respectively," NSE said.

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The inclusion of Trent and BEL is expected to bring passive inflows of $702 million and $430 million into the headline Nifty 50 index. The counters will have a weight of 1.4 percent and 0.9 percent respectively, according to Nuvama Institutional Equities.

In the September rejig, Cipla and HDFC Life are also expected to see their weightage in the Nifty 50 index rise, while M&M, Infosys, ICICI Bank, Reliance Industries, Adani Enterprises, HDFC Bank, Bharti Airtel, Hindustan Unilever, Kotak Mahindra Bank and Axis Bank will see their weights in the index go down.

Canara Bank will make a debut to the Bank Nifty index, replacing Bandhan Bank during the rejig. The weightage of SBI, Federal Bank, Bank of Baroda, AU Bank and others is expected to rise, while banking bellwethers Kotak Mahindra Bank and HDFC Bank's weightages will reduce.

After exiting the Nifty 50 index, Divi's Labs and LTIMindtree are poised to enter the Nifty Next 50 index, along with JSW Energy, Lodha, BHEL, NHPC, and Union Bank.

Trent and BEL are set to exit the Nifty Junior index to graduate to the frontline index, while Colgate-Palmolive, Marico, SRF, SBI Card and Berger Paints will also make an exit.

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