Shares of Bharat Electronics (BEL) and Trent are in focus on Monday after the National Stock Exchange (NSE) announced a reorganization of its Nifty equity indices. Bharat Electronics and Trent will be included in the Nifty 50, effective September 30. On the other hand, Divi's Laboratories and LTIMindtree will be excluded from the 50-stock index.
The changes will be effective from September 30, 2024, as per the NSE circular.
Divi's Laboratories entered Nifty in 2020 and LTIMindtree was included in the index last year.
According to a note by brokerage firm Nuvama Alternative & Quantitative Research, in case Trent and Bharat Electronics were to be included in the Nifty 50 index, it lead to both these stocks getting inflows worth up to $647 million and $463 million, respectively.
"Trent and BEL have been included in the Nifty 50 index as the six-month average free-float market capitalisation of these companies within eligible universe is at least 1.5 times the six-month average free-float market capitalisation of the smallest constituents, which were Divis and LTIMindtree," the NSE Circular stated.
On Friday, Trent shares ended at Rs 6,950, down 0.62% on BSE. The multibagger stock has delivered stellar returns of 416% returns in the last two years. The Tata Group stock, which closed at Rs 1345 on August 23, 2022 hit a record high of Rs 7032 in the previous session. The multibagger stock is overbought on charts as the relative strength index (RSI) of the stock stands at 77.3. Trent stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages which means its trading in bullish zone in both long and short terms.
Shares of BEL ended 0.49% higher at Rs 306.05 on Friday. Market cap of the firm stood at Rs 2.23 lakh crore. The multibagger stock is neither overbought nor oversold on charts as the relative strength index (RSI) of the stock stands at 51.5.