Trent, Bharat Electronics likely to replace LTI Mindtree and Divi’s Lab in Nifty: Nuvama

Retailer and hypermarket operator Trent and state-owned Bharat Electronics are likely to replace LTI Mindtree and Divi’s Laboratories in the forthcoming rejig in the Nifty index, according to an estimate by Nuvama Alternative & Quantitative Research.

The possible changes would lead to an inflow of $429 million or Rs 3,500 crore into Trent and $ 361 million or Rs 3,000 crore into Bharat Electronics, the brokerage said. The upcoming September 2024 rejig will be an action where we could see two stocks replacing the market’s underperformers.

NSE will consider the average market cap over the six months ending in July to decide on the stock replacement. The official announcement will occur in the latter half of August, with the adjustment taking place on September 30.

If Sebi approves the inclusion of Zomato and Jio Financial Services into the F&O segment before the rejig announcement by NSE in August, they will have a higher chance to make it to Nifty over Trent and Bharat Electronics, said Nuvama.

Trent shares have rallied 80% in the last six months, while Bharat Electronics gained 60%.Nifty exit will result in an outflow of $186 million (Rs 1,500 crore) from LTI Mindtree and $ 213 million (Rs 1,750 crore) from Divi’s Lab.LTI Mindtree shares plunged 13% in the past six months, while Divi’s Lab stock gained 9% during this period.

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