NSE Rejig: Trent, BEL And Others Could Bring In $1.2 Billion Inflows Into Nifty50

The Nifty50 may attract inflows worth over $1 billion, and the banking stocks may bring around $146 million due to the NSE rejig that will take place on Friday, according to Nuvama Alternative & Quantitative Research.

Trent Ltd., Bharat Electronics Ltd., and Canara Bank Ltd. will be among the companies that will see inclusions in the benchmark NSE Nifty 50 index which will usher in about $1.2 billion.

The semi-annual rejig, scheduled to take place after the market closes, is expected to be "action-packed," according to Nuvama.

Divi's Laboratories Ltd., LTIMindtree Ltd., NTPC Ltd., and Mahindra & Mahindra among others will see potential exclusions from the index, the brokerage said. These exclusions could trigger an outflow of $1.14 billion, Nuvama said.

The CPSE index of India's biggest stock exchange will see an inflow of $148 million from the increased weights of Oil and Gas Corp., Coal India Ltd., and NHPC Ltd. among others. NTPC and Power Grid Corp. could see potential weight reduction in the index, according to Nuvama.

In the key banking index— Nifty Bank—IndusInd Bank Ltd., State Bank of India, Federal Bank Ltd., Bank of Baroda could see their weights increase. Meanwhile, Kotak Mahindra Bank Ltd., ICICI Bank Ltd. and HDFC Bank Ltd. could see weight reduction, Nuvama said.