Trent, Bharat Electronics Added to Sensex; Nestle India, IndusInd Bank Dropped

Mumbai, June 20, 2025 – In a strategic reshuffle of India’s most tracked equity benchmark, the 30-share BSE Sensex is set to witness a significant overhaul today with the inclusion of Trent Ltd. and Bharat Electronics Ltd. (BEL). This adjustment, which takes effect from market opening on June 20, comes at the cost of two high-profile exclusions—Nestle India and IndusInd Bank. The changes are part of the semi-annual index review undertaken by BSE in collaboration with Asia Index Pvt. Ltd. and are likely to have substantial implications for passive fund flows, portfolio rebalancing, and stock liquidity.

Strategic Entry of Trent and BEL Expected to Drive Inflows Over $700 Million

Trent Ltd., the Tata Group’s booming retail venture, and BEL, a marquee player in India’s public sector defence manufacturing space, are poised to attract significant passive inflows following their induction into the Sensex. According to estimates by Nuvama Alternative & Quantitative Research, Trent could see inflows of approximately $330 million, while BEL might witness passive fund inflows of $378 million, making this one of the more impactful reshuffles in recent years. Historical market patterns suggest that such inclusions often result in intraday surges and enhanced liquidity, as index-tracking funds rush to realign their portfolios to mirror the updated composition. Trent’s rapid retail expansion and BEL’s strategic role in India’s defense ecosystem have underpinned their eligibility, aligning with broader market themes such as consumption growth and self-reliance in defense production.

Highlights:

• Trent and BEL added to Sensex effective June 20, 2025.

• Expected inflows: $330 million for Trent, $378 million for BEL.

• Likely intraday gains due to passive fund tracking and volume spikes.

• Selections driven by fundamental growth, market capitalization, and liquidity metrics.

Also Read : Ten Indian Stocks That Have More Than Doubled in 2025 Despite Volatility

Nestle India and IndusInd Bank Exit Index Amid Relative Underperformance

As Trent and BEL step in, Nestle India and IndusInd Bank are set to exit the benchmark index—a move that has sparked mixed reactions among institutional investors. Nestle, once considered a stable defensive bet within the FMCG space, has seen its relative weight and volume diminish amid rising competition and stagnating growth metrics. Similarly, IndusInd Bank’s stock performance has lagged behind peers in the private banking segment, particularly in the wake of rising asset quality concerns and tepid loan book growth. The outflows projected due to their removal stand at $230 million for Nestle and $145 million for IndusInd Bank, respectively. Analysts suggest these stocks may experience temporary pressure in the near term as passive outflows materialize, though longer-term prospects remain contingent on their sector-specific strategies.

Highlights:

• Nestle India and IndusInd Bank removed from Sensex from June 20.

• Projected passive outflows: $230 million and $145 million respectively.

• Nestle’s FMCG sector weight reduced, amid growth plateau.

• IndusInd faces continued valuation drag, despite governance reforms.

Broader Index Adjustments: BSE 100, Sensex 50, and Sensex Next 50 See Multi-Sector Changes

Beyond the headline Sensex reshuffle, the BSE 100, Sensex 50, and Sensex Next 50 indices will also undergo coordinated changes. In the BSE 100, three new constituents—Dixon Technologies, Coforge, and Indus Towers—will replace Bharat Forge, Dabur India, and Siemens. These changes reflect the growing weight of sectors like consumer electronics manufacturing, IT services, and telecom infrastructure, in contrast to the cyclical and traditional FMCG-heavy mix being trimmed. In the Sensex 50, InterGlobe Aviation (IndiGo) and Shriram Finance are entering, replacing Britannia Industries and Hero MotoCorp. Simultaneously, Britannia, Dixon, Coforge, Hero MotoCorp, and Indus Towers will join the Sensex Next 50, replacing those moving up the ladder or being phased out.

Highlights:

• BSE 100 adds Dixon, Coforge, Indus Towers, removing Bharat Forge, Dabur, Siemens.

• Sensex 50 gains InterGlobe Aviation and Shriram Finance.

• Britannia, Hero MotoCorp among major exclusions.

• Reflects a shift in favor of high-growth sectors like electronics and fintech.

Weightage Rebalancing: UltraTech Gains, Heavyweights Lose Share

Alongside constituent changes, index weight adjustments will also take effect. UltraTech Cement is the sole heavyweight set to gain weightage in the updated Sensex composition, which could translate to modest inflows of $4 million. Conversely, established index stalwarts such as HDFC Bank, Reliance Industries, ICICI Bank, Infosys, Bharti Airtel, L&T, Sun Pharma, ITC, TCS, Axis Bank, Kotak Mahindra Bank, and SBI will see minor reductions in their relative weights, resulting in cumulative passive outflows of approximately $249 million. These adjustments, though less dramatic than full inclusions or exclusions, reflect a refined sectoral balance aimed at improving index representativeness as India’s economy and markets evolve.

Highlights:

• UltraTech Cement to see $4 million inflow due to higher index weight.

• $249 million in passive outflows expected from top index heavyweights.

• Reflects portfolio balancing and sectoral realignment within benchmark indices.

• Top IT, banking, and pharma names see slight trimming in weight share.