Nuvama Alternative and Quantitative Research says Trent and BEL are set to replace Divis Laboratories and LTI Mindtree in Nifty during the September rejig. 

Changes in Nifty 50: The possible rejig will lead to an inflow of $500 million (around ₹4,195 crore) to Trent and $440 million (around ₹3,692 crore) to BEL, the brokerage firm said. LTI Mindtree and Divis Laboratories are expected to see outflows of $210 million (₹1,762 crore) and $260 million (₹2,181 crore) respectively. 

Nifty rejig is to reward the outperforming stocks while punishing the underperformers, the brokerage said in its note. 

Trent had risen 88% in the six months till July 31, BEL gained 70%, while Divis Laboratories gained 25% and LTI Mindtree fell 9% in the same time. 

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NSE will consider the average market cut-off till July 3. The official announcement is expected to happen around the latter half of August and adjustment of the index will take place on September 30. 

If market regulator SEBI approves futures and options inclusion, to Zomato and Jio Financial before the rejig announcement, then these stocks will enter the index along with Trent while BPCL will also be excluded along with LTI Mindtree and Divis. 

Changes In Other Indices: In Nifty Next 50, JSW Steel, NHPC, Union Bank, Hindustan Zinc and Indian Overseas Bank are expected to enter replacing Colgate Palmolive, SRF, Marico, SBI Cards and Berger Paints. 

In Nifty Bank, Canara Bank is expected to replace Bandhan Bank. 

Price Action: Shares of Trent have moved up 2.43% in the morning to ₹5,781.30 while BEL has risen 1.96% to ₹304.1.

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