Trent shares rally 2% on Nifty inclusion next month

Shares of Tata group-owned Trent rose 2% to its new all-time high of Rs 7,090 in Monday’s early trade on BSE after the NSE Indices Committee announced the changes for the September 2024 rejig,making way for the stock’s inclusion in the Nifty50 index.

The new adjustments will take place on September 27, and the changes will become effective on September 30.

The stock is expected to experience a net inflow of $470 million, according to a report by the domestic brokerage firm Nuvama.


Another new entrant in the index will be Bharat Electronics (BEL) meanwhile Divi’s Laboratories and LTIMindtree will be excluded from the Nifty50 and will make their way to the Nifty Next 50 index.

“The recent momentum is evident in two sectors: Retail and Defence. Reflecting this trend, one stock from each sector will be added to the Nifty 50 Index starting September 30. India is undergoing a transformational journey on many fronts, and within Emerging Markets, there are few stories where so many sectors can be played,” said Nuvama in its report.

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Divi's Laboratories was included in the Nifty index in 2020. However, LTIMindtree was a more recent addition to the index, having been included only last year.

Trent shares have rewarded its investors as they have multiplied by 3.5 times in the last one year and have more than doubled in the current year so far. The stock’s six-month and three-month returns have been 83% and 49% respectively.

Technically, the stock is very well placed on the charts performing above all its significant short, medium and long-term exponential moving averages and oscillating in the overbought zone, near the 77 level, on the relative strength indicator (RSI), according to the Trendlyne data.

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