Sensex Rejig: Trent, BEL to see over $700 million in inflows; Nestle, IndusInd face exit
The BSE Sensex is set for a reshuffle next week, with Tata Group's Trent and Bharat Electronics (BEL) entering the benchmark 30-share index, replacing
Nestle India
and
IndusInd Bank
. The changes, announced earlier, will take effect from Monday, June 24, while passive fund flows linked to the rejig are expected on June 20.
According to estimates by Nuvama Alternative Research, Bharat Electronics could see inflows of around $378 million — approximately 2.8 times its average daily volume (ADV). BEL shares have rallied 38% over the last six months, driven by strong interest in defence sector stocks.
Trent, the Tata Group's retail arm, may witness passive inflows of $330 million, or 5.8 times its ADV. Despite a 15% decline over the past six months, Trent remains a key large-cap component in the BSE 100 index.
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On the other hand, Nestle India is likely to see outflows of $230 million — roughly 10.7 times its average daily volume (ADV) — following its removal from the index. The stock has gained 8% over the last six months.
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IndusInd Bank, which has faced scrutiny over governance concerns in recent months, will also be excluded. The lender may see outflows of $145 million, equivalent to about 1.9 times its ADV.
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Among other changes,
UltraTech Cement
will see a marginal weight increase, with estimated inflows of $4 million. Meanwhile, index heavyweights such as
HDFC Bank
,
Bharti Airtel
,
Reliance Industries
,
ICICI Bank
,
Infosys
,
Sun Pharma
, L&T, and
ITC
are expected to see minor weight reductions, possibly resulting in limited passive outflows.
Separately, the FTSE index rejig is also expected to trigger significant inflows into several Indian stocks.
Vishal Mega Mart
may see the highest inflow at $115 million, followed by
Hyundai Motor India
($56 million),
Waaree Energies
($49 million),
Swiggy
($32 million), and
NTPC Green Energy
($22 million).
Additionally, Reliance Industries could receive $57 million in inflows, with an estimated 3 million shares being added—though this represents only 0.3 times its average daily volume (ADV). Other companies expected to be included in the FTSE indices include Afcons Infrastructure, OneSource Specialty Pharma, Sai Life Sciences, and Inventurus Knowledge.
Index rebalancing exercises are closely tracked by investors as they influence passive fund flows and reflect broader market trends. These adjustments help ensure that benchmark indices such as the Sensex remain aligned with India's evolving equity landscape.
(
Disclaimer
: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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