Shares of a Tata Group company gained 2.68% on Friday’s early trades to reach a new record high of ₹ 2027.70 apiece. This happened after the National Stock Exchange (NSE) announced its inclusion in the Nifty Next 50 index with effect from September 29.
At 12:20 PM, Trent’s shares were trading at ₹ 2,000.00 apiece, up 1.28%. Trent is a Tata Group company engaged in the retailing of apparel, footwear, accessories, toys, games, food, grocery & non-food products through various of its retail formats.
According to Nuvama Alternative & Quantitative Research, Trent’s inclusion in the index is likely to result in potential inflows of $44 million into Trent.
The Nifty Next 50 index is a sensitive index that tracks 50 large-cap stocks that rank after the top 50 Nifty stocks (Nifty 50 index) in terms of free-float market capitalization. These stocks are strong contenders for their inclusion in the benchmark Nifty 50 index going forward.
Free float market capitalization is the portion of share capital which is available for the public to trade in the stock market. This is that portion of the total equity that is not held by the promoters.
Besides Trent, Punjab National Bank, Shriram Finance, TVS Motor and Zydus Lifesciences will also be included in the Nifty Next 50 index. Meanwhile, ACC, FSN E-Commerce (Nykaa), HDFC Asset Management, Page Industries and Indus Towers will be removed from the index to accommodate these stocks.
In the Nifty 500 index, Godrej Agrovet, BASF India, Mahindra Logistics, NOCIL and Indiabulls Real Estate will be replaced by Jindal SAW, Kaynes Technology, Ujjivan Small Finance Bank, Sheela Foam and Safari Industries.
Affle (India), Happiest Minds Technologies, Nippon Life India Asset Management, Clean Science and Technology and Fine Organic Industries will be replaced by Rail Vikas Nigam Ltd (RVNL), Mazagon Dock, KPIT Technologies, Fertilisers and Chemicals Travancore and Bank of Maharashtra in the Nifty Midcap 150 index.
Written by Simran Bafna
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