$900 mn inflows! Trent, BEL, Canara Bank to enter Nifty50 today

The National Stock Exchange (NSE) will rebalance its equity indices on Friday as part of its semi-annual reshuffle.

Tata Group’s Trent and state-owned BEL will replace drugmaker Divi’s Lab and LTIMindtree in the benchmark Nifty 50 index.

ETMarkets.com

Along with Nifty 50, the NSE will also rebalance other indices such as Nifty Bank, Nifty Next 50, and CPSE on Friday. The Nifty indices are reviewed semi-annually, based on data from six-month periods ending January 31 and July 31.Global and domestic passive funds, such as exchange-traded funds (ETFs), structure their portfolios based on these indices. Any changes in index composition prompt these funds to adjust their allocations accordingly.

Trent and BEL are expected to see inflows of $500 million and $350 million, respectively, on account of the Nifty inclusion, according to an estimate by Nuvama Alternative & Quantitative Research.

Divi’s Laboratories is likely to see an outflow of $200 million, while LTIMindtree is expected to see selling of $163 million.

NTPC and M&M are also projected to see outflows of $136 million and $116 million, respectively, on account of the index readjustments, on Friday.