Are Bharat Electronics and Trent Joining the Sensex Amid BSE Index Changes?
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Synopsis
Trent Limited and Bharat Electronics Limited are set to join the Sensex, replacing IndusInd Bank and Nestle India. This significant index reshuffle by the BSE takes effect on June 23, anticipating substantial capital inflows for these companies. Discover the implications of this change on the Indian stock market.
Key Takeaways
- Trent Limited and Bharat Electronics are set to join the Sensex.
- Changes take effect on June 23.
- Trent could see inflows of $278 million.
- BEL may attract $275 million in investments.
- Adjustments made to other BSE indices as well.
Mumbai, May 23 (NationPress) Trent Limited and Bharat Electronics Limited (BEL) are poised to be included in the prestigious 30-stock benchmark Sensex, taking the place of IndusInd Bank Limited and Nestle India Limited. This announcement is part of the latest reshuffling by the Bombay Stock Exchange (BSE).
The modifications will be effective from June 23. This reshuffling is a routine part of the rebalancing of the benchmark index, aimed at mirroring the evolving landscape of the Indian stock market.
With this change, significant buying and selling activities are anticipated around the date of implementation.
Tata Group's apparel retail entity Trent is expected to attract substantial capital inflows of approximately $278 million, equivalent to nearly Rs 2,400 crore.
This influx is projected to be 2.5 times its average daily trading volume, according to estimates by IIFL Alternate Desk.
In a similar vein, Bharat Electronics (BEL), a pivotal player in the defence sector, may experience inflows amounting to $275 million, which is 3.1 times its typical daily trade.
Notably, BEL shares have surged nearly 37 percent over the past six months.
Conversely, Nestle India may face outflows estimated at $210 million or Rs 1,800 crore. This figure represents 7.7 times its average daily volume.
In the past six months, the stock has appreciated only about 5 percent. IndusInd Bank, currently under scrutiny due to alleged fraud and governance issues, could see an outflow of $135 million, or Rs 1,155 crore.
Besides the adjustments to the Sensex, the BSE has also made changes to other indices.
Dixon Technologies, Coforge, and Indus Towers have been incorporated into the BSE 100 index, while Bharat Forge, Siemens, and Dabur India have been removed.
Updates have also been made to the Sensex 50, Sensex Next 50, and Bankex indices. Such index changes are crucial as they affect fund movements.
Mutual funds and exchange-traded funds (ETFs) tracking these indices must adjust their portfolios to align with the new structure.
This rebalancing process typically commences several days prior to the official implementation date.
Point of View
It's essential to recognize the significance of the recent changes in the Sensex. Trent Limited and Bharat Electronics's inclusion reflects the dynamic nature of the Indian economy, showcasing the potential for growth in the defence and retail sectors. These updates are pivotal for investors and market participants alike.
NationPress
21/07/2025
Frequently Asked Questions
What companies are joining the Sensex?
Trent Limited and Bharat Electronics Limited are joining the Sensex, replacing IndusInd Bank and Nestle India.
When will the changes to the Sensex take effect?
The changes will take effect on June 23.
What is the expected capital inflow for Trent?
Trent is expected to receive about $278 million, or nearly Rs 2,400 crore.
How much have BEL shares increased in the last six months?
BEL shares have risen nearly 37 percent over the past six months.
What other indices were adjusted by the BSE?
The BSE made adjustments in the BSE 100 index and other indices such as Sensex 50 and Bankex.
