In the Nifty 50 September rejig, Tata Group‘s Trent and defence major Bharat Electronics are poised to join the Nifty 50 index, replacing Divi’s Laboratories and LTIMindtree. The changes, announced on Friday, will take effect from September 30, 2024.

What Happened: Trent and BEL’s inclusion in the Nifty 50 index could lead to major inflows in the stocks, analysts had estimated. Divi’s Laboratories and LTIMindtree will now be part of the Nifty Next 50 index.

The NSE circular stated that Trent and BEL were included in the Nifty 50 index as their six-month average free-float market capitalisation was at least 1.5 times that of the smallest constituents, Divis and LTIMindtree.

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According to a report by Nuvama Alternative & Quantitative Research, the Nifty rejig is designed to reward outperforming stocks while punishing the underperformers. The inclusion of Trent and BEL in the Nifty 50 index is a testament to their strong performance.

The report further states that the possible rejig could lead to an inflow of $500 million (around ₹4,195 crore) to Trent and $440 million (around ₹3,692 crore) to BEL. Conversely, LTI Mindtree and Divis Laboratories are expected to see outflows of $210 million (₹1,762 crore) and $260 million (₹2,181 crore) respectively. BHEL, JSW Energy, Macrotech, NHPC and Union Bank of India have also been included in the Nifty Next 50.

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