Bharat Electronics (BEL) and Trent are poised to gain significant attention as they join the Nifty 50 index. The Index Maintenance Sub-Committee (Equity) of NSE Indices announced the inclusion of these stocks as part of its semi-annual review of general market indices. The adjustments will come into effect on September 30.
Trent, with an average free float market capitalisation of Rs 99,364 crore, and BEL, with an average free float of Rs 89,317 crore, have been added to the Nifty 50 index. The decision is based on their six-month average free float market capitalisation, which is at least 1.5 times that of smaller constituents Divis Laboratories and LTIMindtree, according to a report to the company’s shareholders’ meeting. NSE circular.
Brokerage firm Nuvama Institutional Equities had anticipated these changes, predicting inflows of up to $647 million for Trent and $463 million for BEL as a result of their inclusion in the Nifty 50 index.
BEL, a Navratna-based public company specialising in defence and aerospace, has delivered exceptional returns to its shareholders. In the past 12 months, the stock has soared 126 per cent, more than doubling investors’ wealth. So far this year, it is up 65 per cent, outperforming the Nifty’s 14 per cent and the Nifty Next 50’s 39 per cent.
Trent shares closed half a percentage point lower at Rs 6,950 on the National Stock Exchange (NSE) in the previous session. The stock hit a low of Rs 365 on March 24, 2020, during the COVID-19 lockdown. Since then, Tata Group shares have rallied nearly 20 times. Over the past one year, Trent has soared 246 per cent, far outperforming the Nifty 50 and Nifty Next 50, which gained 28 per cent and 68 per cent, respectively.
Eligibility for inclusion in Nifty 50 is limited to stocks available for trading on NSEFutures and Options (F&O) segment of the company. The changes will also be reflected in the Nifty 50 Equal Weight Index.
With their inclusion in the Nifty 50, BEL and Trent will be removed from the Nifty Next 50 index. The replacements in the Next 50 index include Bharat Heavy Electricals (BHEL), Divis Laboratories, JSW Energy, LTIMindtree, Macrotech Developers, NHPC and Union Bank of India, which will take the place of Berger Paints, BEL, Colgate Palmolive (India), Marico, SBI Cards, SRF and Trent.
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