Shriram Finance or Hindalco may enter Sensex in June: Nuvama

Mumbai: Hindalco Industries or Shriram Finance could enter the BSE's Sensex in the June rejig, while Trent is likely to be dropped, according to Nuvama Alternative and Quantitative Research.

The changes could bring passive inflows of about $366 million into Hindalco or $445 million into Shriram Finance. Trent may see outflows of around $257 million. It's likely exclusion follows a relative decline in free-float market capitalisation after recent underperformance, the report said.

Nuvama expects an announcement on May 22 and implementation from June 19. "While Shriram Finance currently leads on free-float market capitalisation, we believe Hindalco may have a relatively higher probability of inclusion, supported by the index committee's preference for broader sectoral representation within the BSE universe," said Abhilash Pagaria and Anisha Gupta of Nuvama.