The BSE Sensex is set for a significant reshuffle, with two prominent Indian companies, Bharat Electronics Ltd (BEL) and Trent Ltd, joining the 30-stock benchmark index from Monday. These additions will replace Nestle India and IndusInd Bank, in a move that is expected to drive passive inflows.

Big Inflows for BEL and Trent

Defence major Bharat Electronics Ltd. is expected to attract inflows. The stock has gained up to 4.8% in the last week, up to 40% in the last three months, and up to 36% in the last six months, buoyed by strong order wins and a ₹71,000 crore+ order book. 

Trent Ltd., the Tata Group’s retail arm, is expected to bring in a similar quantum of flows. The stock is down 18% in 2025 so far. Trent has also aggressively expanded its retail footprint, adding 244 Zudio and 40 Westside stores during FY25 and prioritising growth in high-demand metro locations.

Exit of Nestle India and IndusInd Bank

Nestle India Ltd. will be removed from the Sensex after a long tenure, and is expected to see outflows. The stock has gained up to 9% in the last 6 months. Nestle recently announced plans to invest ₹5,000 crore to strengthen its Indian operations, its largest market for Maggi and the second-largest for KitKat.

IndusInd Bank Ltd. will also exit the index, with similar outflows. The stock has had a turbulent year, declined up to 13% in the last 6 months.

Why do these changes trigger flows?

When a stock is added to an index like the Sensex, passive funds and ETFs that track the index are required to buy it, leading to inflows. Conversely, when a stock is removed, these funds sell it, resulting in outflows. These flows are automatic and can significantly impact stock prices.

Broader BSE Index Changes in Focus

Beyond the Sensex, several other BSE indices will change effective June 23. The BSE 100 will see additions such as Dixon Technologies, Coforge, and Indus Towers, replacing Bharat Forge, Dabur India, and Siemens. In the Sensex 50, Interglobe Aviation and Shriram Finance will replace Britannia Industries and Hero Motocorp, which will shift to the Sensex Next 50. IDFC First Bank will also join the BSE Bankex, replacing Canara Bank. 

Disclaimer

Investments in securities market are subject to market risks, read all the related documents carefully before investing. This is for informational purposes and should not be considered as recommendations.

Kindly refer to  https://share.market/ for more details.

PhonePe Wealth Broking Private Limited is a member of NSE & BSE with SEBI Regn. No.: INZ000302639, Depository Participant of CDSL Depository with SEBI Regn. No.: IN-DP-696-2022, Research Analyst with SEBI Regn No: INH000013387, BSE RA Enlistment Number: 5887, and Mutual Fund distributor with AMFI Registration No: ARN- 187821. Member ID: BSE- 6756, NSE- 90226. 

Registration granted by SEBI, enlistment as Research Analyst, and Certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors

Registered office – 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Service Road, Green Glen Layout, Bellandur, Bengaluru South, Bengaluru, Karnataka – 560103, INDIA.

CIN: U65990KA2021PTC146954.