The Nifty indices are set to undergo a significant reshuffle, effective from the closing of Friday’s trading session. As part of this rejig, 10 stocks are expected to receive notable inflows, led by Trent and Bharat Electronics (BEL), according to a report by Nuvama Alternative & Quantitative Research.
Tata Group’s Trent Leads the Pack
Tata Group’s retail giant Trent, which has seen a remarkable rise in its stock value—tripling over the last 12 months—will be one of the two newest entrants to the Nifty 50 index. According to Nuvama, Trent is expected to attract the highest inflows among the top 10 stocks, with nearly $500 million projected to flow into the stock post its inclusion in the index.
Bharat Electronics (BEL) Joins Nifty 50
State-run Bharat Electronics (BEL) is the second new entrant to the Nifty 50 index. BEL is anticipated to receive inflows worth $336 million, as per Nuvama’s report, following its inclusion.
Canara Bank Joins Nifty Bank
Canara Bank will be added to the Nifty Bank index, with Nuvama expecting inflows of $92 million. Over the past month, shares of Canara Bank have seen a decline of 1.5%.
JSW Energy and Other Nifty Next 50 Entrants
JSW Energy will also benefit from the index reshuffle, with inflows worth $54 million expected following its inclusion in the Nifty Next 50 index. The stock has posted an 8% gain in the last month.
Macrotech Developers (also known as Lodha) is another stock that will join the Nifty Next 50 index, with anticipated inflows of $50 million.
Additional inclusions in the Nifty Next 50 index include NHPC, Bharat Heavy Electricals Limited (BHEL), and Union Bank of India. Nuvama predicts inflows of $50 million, $47 million, and $32 million, respectively, for these stocks post-rejig.
Weightage Increases for ONGC and Coal India
Existing Nifty constituents ONGC and Coal India are set to see a boost in their weightage on the index. Nuvama anticipates that both stocks will receive inflows worth $26 million as a result of the weightage adjustments.