Nifty50 rejig: Trent, Bharat Electronics enter, LTIMindtree, Divi's Labs make exit
Tata Group's lifestyle company Trent (TRENT) and state-run Bharat Electronics (BEL) are the latest inclusion into the Nifty 50 index while LTI Mindtree (LTIM) and Divi's Laboratories have made an exit.
The Index Maintenance Sub-Committee (Equity) of NSE Indices on Friday made the changes in the 50-stock index and the same will become effective from September 30, 2024 (close of September 27, 2024).
The Nifty 50 index is reviewed twice a year, based on six-month data ending January 31 and July 31. The index represents 50 stocks based on free-float market capitalisation and liquidity, with an average impact cost of 0.50% or less for 90% of the observations for a basket size of Rs 10 crore. The next index reshuffle will be effective from September 30.
The report mentioned that for September rebalancing, based on average free float market cap that prevailed between February 1 to July 31, the above mentioned changes are expected.
In August so far, the share price of Trent has surged by 17.1% whereas for Bharat Electronics it went down by 3.6%. For LTIM and DIVI, the share price went up by 1.6% and down by 0.8% respectively in the said period.
After the index reshuffling, Trent and Bharat ELectronics are expected to receive flows of 523 $ million and 394 $ million respectively. On the other hand, LTI Mindtree and Divis Laboratories are expected to witness outflows of 205 $ million and 221 $ million respectively.
The report also mentioned that Jio Financial and Zomato have an average free float market cap higher than
