Trent Ltd. and Bharat Electronics Ltd. will be the new additions to the 30-stock frontline index Sensex, replacing the crisis-hit IndusInd Bank Ltd. and Nestle India Ltd., according to the rebalancing announced by the BSE on Thursday.
The changes will come into effect from June 23, 2025.
The index rejig is carried out by Asia Index Pvt., a wholly-owned subsidiary of BSE Ltd.
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Based on the Sensex rejig, capital inflows and outflows are expected to commence from June 23.
Tata Group apparel retailer Trent is anticipated to accrue an inflow of $278 million or around Rs 2,400 crore, representing 2.5 times its average daily volume (ADV), according to IIFL Alternate Desk.
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Bharat Electronics could see inflows of $275 million, equating to 3.1 times its ADV. A darling of the street from the defence pack, BEL shares have surged nearly 37% in the last six months.
Conversely, Nestle India stock is estimated to register an outflow of $210 million or Rs 1,800 crore, a substantial 7.7 times it's ADV. The stock has risen 5% in the last six months.
Under a cloud of suspected fraud and corporate governance concerns, IndusInd Bank could potentially face outflows of $135 million or Rs 1,155 crore, which is 1.1 times its ADV.
BSE 100 Rejig
Dixon Technologies Ltd., Coforge Ltd., and Indus Towers Ltd. have been included in BSE 100 index of large-cap stocks, whereas Bharat Forge Ltd., Siemens Ltd. and Dabur India Ltd. have been removed.
BSE has also revised the Sensex 50, Sensex Next 50 and Bankex indices.
Index rejigs are a key event for the market because they help the market participants gauge the direction in which the funds are moving. The periodic rebalancing of the Sensex ensures the benchmark index remains representative of India's evolving market dynamics.
When an index is reorganised, exchange-traded funds and mutual funds that track that index perform a rebalancing exercise. This is crucial for them to re-align their portfolios with the new composition of the index.
Essentially, the index's constituents are adjusted to maintain the intended asset allocation proportions or to keep the overall risk level consistent with the index's predefined methodology.
The rebalancing activity usually begins days before the date the changes are implemented.
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