Index Rejig: Trent, BEL, Canara Bank, BHEL, JSW Energy among top stocks to enter Nifty 50, Nifty Next 50, Bank Nifty and Nifty 100 starting September

The NSE Indices Committee has announced a major reorganization of its indices, set to take effect in September 2024, impacting several key indices including Nifty 50, Nifty Next 50, Nifty 100, and Nifty Bank. These changes are expected to trigger significant inflows and outflows for various companies.

Nifty 50

In the Nifty 50 index, Trent and Bharat Electronics are set to be included. These additions are projected to generate net inflows of approximately $470 million and $335 million, respectively, after adjusting for exclusions in the Nifty Next 50.

On the other hand, Divis Labs and LTI Mindtree will be excluded, leading to expected outflows of about $180 million and $150 million, respectively.

Nifty Next 50

The Nifty Next 50 index will see the inclusion of Divis Labs ($79 million), LTI Mindtree ($66 million), Bharat Heavy Electricals (BHEL) ($49 million), JSW Energy ($47 million), Lodha ($41 million), NHPC ($39 million), and Union Bank ($31 million). 

Conversely, Trent ($175 million), Bharat Electronics ($125 million), Colgate-Palmolive (Col-Pal) ($57 million), SRF ($43 million), Marico ($42 million), SBI Card ($25 million), and Berger Paints ($19 million) will be excluded from the index.

Bank Nifty

The Bank Nifty index will see Canara Bank included, with a projected net inflow of approximately $44 million. Bandhan Bank, however, will be excluded, resulting in an expected outflow of about $37 million.

Nifty 100

For the Nifty 100 index, BHEL, JSW Energy, Lodha, NHPC, and Union Bank are slated for inclusion. The exclusions from this index will be Berger Paints, Colgate-Palmolive (Col-Pal), Marico, SBI Card, and SRF.

These changes by the NSE Indices Committee are poised to impact market dynamics, with substantial fund movements across these companies as a result of the index rebalancing.