Nifty Rejig: This PSU name could become the newest Nifty member
Summary
The possible changes would lead to an inflow into Trent and BEL to the tune of $429 million and $361 million, respectively, according to estimates by Nuvama.
Bharat Electronics Ltd. and Trent Ltd. are expected to replace Divi’s Laboratories Ltd. and LTIMindtree Ltd. in the benchmark Nifty50 index during the upcoming reshuffle in September this year, according to Nuvama Alternative and Quantitative Research.
The possible changes would lead to an inflow into Trent and BEL to the tune of $429 million and $361 million, respectively, according to estimates by Nuvama.
Alongside the exclusion names LTIMindtree and Divi’s Laboratories, which will likely experience an outflow to the tune of $186 million and $213 million, respectively.
The official announcement will occur in the latter half of August, with the adjustment taking place on September 30, 2024.
“We strongly believe LTIMindtree should get eliminated as Trent is far ahead on inclusion criteria. While if Divi’s outperforms its probable replacement BEL by 25% or so very soon and maintains that outperformance till the end of July, only then it could be saved. However, the chances look slim,” the Nuvama note said.
The brokerage said that the Tata Group company is the closest inclusion contender, followed by BEL.
“As of now, the only stock which is closer to BEL is Hindustan Aeronautics. If HAL outperforms BHE by more than 20% soon and stays there till the end of July, then it will have a higher chance,” it said.
The NSE rebalances its indices twice every year, and owing to this rejig, certain stocks are replaced by others.
Shares of BEL were trading with gains of 4.12% while the Trent stock rose a percent during Friday’s (May 17) afternoon deals.
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