Trent and BEL likely to enter Nifty; LTIM and Divi’s Labs may exit

Trent and Bharat Electronics (BEL) may be included in the benchmark Nifty in the next shuffling of indices by the NSE in September, according to Nuvama Alternative & Quantitative Research. The two stocks could take the place of LTIMindtree and Divi’s Labs. Nuvama said the changes could result in $500 million inflow into Trent and $440 into BEL and outflow of $210 million from LTIMindtree and $260 million from Divi’s.

“The upcoming rejig will be action-packed, with the potential for two stocks to replace the market’s underperformers,” said Nuvama Alternative & Quantitative Research’s head Abhilash Pagaria. The official announcement for the rejig is likely in the second half of August and the adjustment will take place on September 30.

“If Sebi approves F&O inclusion for Zomato and Jio Financial Services before the rejig announcement by NSE Indices in August, these stocks will have a higher chance of making it to the Nifty,” said Pagaria. “In that case, the inclusions will be Zomato, Jio, and Trent, while the exclusions will be LTIMindtree, Divi’s, and BPCL.”

In the Bank Nifty, Canara Bank is expected to replace Bandhan, said Nuvama. JSW Steel, NHPC, Union Bank, Hindustan Zinc, and IOB could be included in the Nifty Next 50, while Colgate, SRF, MRPL, SBI Cards and Berger Paints could be excluded.