Brokerage firm Nuvama mentioned that Trent and Bharat Electronics Limited (BEL) could replace LTI Mindtree and Divi’s Laboratories in the Nifty 50 in the upcoming reconstitution in end-September. As part of Nifty 50 rebalancing ,these 2 companies can be potential Nifty 50 new entries 2024.
Trent is promoted by Tata Sons and BEL is government owned organization.
Trent to join nifty 50
Key Points to consider for Changes to key indices:
Which stocks will enter in Nifty 50?
- As per Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research, The inclusion of Trent and BEL is projected to bring in an inflow of $429 million and $361 million, respectively, to the counters. Conversely, the exclusion of LTIMindtree and Divi’s Labs could see outflows of $186 million and $213 million.
- Pagaria also believes that “The reaction of investors will be to front load Trent and BEL and to sell Divi’s and LTIMindtree over the next few weeks.
- Nuvama’s report said “Precisely, Trent is the closest inclusion contender, followed by Bharat Electronics. As of now, the only stock which is closer to Bharat Electronics is Hindustan Aeronautics. If Hindustan Aeronautics outperforms Bharat Electronics by more than 20% soon and stays there till the end of July, then it will have a higher chance”
- “If Sebi approves F&O inclusion for Zomato and Jio Financial Services before announcement by NSE Indices in August, they will have a higher chance to make it to Nifty over the above-highlighted names. But since the timing is uncertain, I’ll go with the scenario of TRENT and BHE making the cut,”
- The official announcement regarding the index changes will be made in the latter half of August, with the rejig implemented on 30 September.
Which stocks will exit Nifty 50 in September 2024?
-
Divis Labs and LTIMindtree stocks will be removed from Nifty 50.
Zudio is star for Trent:
Most people will be asking queries like is Zudio a Tata brand? or Is Zudio under Trent? Answer is Yes. They are.
When we see why news about Trent being contender for nifty 50 is surging, its because of Zudio says Kruti Shah, analyst, Equirus which is a value fashion and lifestyle offering.
Zudio has been very known among Indian consumers. Store expansion is happening rapidly, Its even beating Westside which is again promoted by Tata.
BEL has been doing well on account of its being a superior defense play, she added.
Company History and fundamentals:
Trent
As per company website, The Company was originally incorporated as Lakme Limited (“Lakme”) on December 5, 1952. Lakme was in the business of manufacturing, sale and export of cosmetics, toiletries, and perfumery products. In 1998, Lakme decided to divest from its cosmetics business and decided to pursue the field of apparel retailing, given the absence of established brands in most categories. It was decided that Lakme would establish a strong presence in the apparel and soft goods retailing market by opening a chain of departmental stores across the country.
Trent Ltd (Trent), a subsidiary of Tata Group, is an operator of retail chains in India. The company operates department stores, hypermarkets, supermarkets and specialty stores. Its product offerings include clothes, footwear, cosmetics, perfumes, handbags, household furniture, and accessories.
Trent recent quarter result:
As per Livemint article, Trent shares jumped over 7 per cent to hit its fresh all-time high of ₹4,669.95 in morning trade on BSE on Tuesday, April 30, a day after the company reported its March quarter (Q4) results. Trent shares opened at ₹4,450.25 against its previous close of ₹4,351.45 and rose as much as 7.32 per cent to hit its fresh record high of ₹4,669.95 on BSE. Around 9:30 am, Trent shares traded 5.33 per cent higher at ₹4,583.30. Equity benchmark Sensex was 0.14 per cent up at 74,774 at that time.
Trent’s share price surged after its Q4 result showed a multi-fold jump in consolidated profit while revenue jumped over 50 per cent for the quarter.
BEL:
As per company website, BEL is among the elite group of Public Sector Undertakings, which has been conferred the Navratna status. The growth of the company mirrors the advances in defence electronics in India. BEL has achieved many milestones over the years. The Akash Air Defence Weapon System is a shining example of BEL’s indigenous design, development and manufacturing drive. The Coastal Surveillance System developed for strengthening surveillance of India’s over-7,500-km-long coastline is being offered to friendly countries. BEL has made giant strides in Radars with the induction of Weapon Locating Radar and 3D Tactical Control Radar.
BEL recent quarter result:
Total Income ₹4,243.57 Cr. Operating profit ₹840.52 Cr. which is increased by 49.14%. PAT is ₹791.00 Cr . Operating Margin 19.81%.
Bel has given strong quarter result.
Fundamentals and technical of stock can be easily found. Please go through our article for the same.
Conclusion:
By end of September BEL ,Trent to join nifty 50 will be confirmed .Both companies are good with respect to revenue and profit. We will have to wait till Index Reconstitution Calendar which will be on end of aug and September 2024.Changes to key indices are always gives good inflow and good to economy as well.
FAQ:
1.What is new Nifty 50?
Nifty 50 is collection 50 top companies of Indian stock exchange. These companies will have good revenue ,good inflow and also contributing growth of economy.
2. What is the full form of NIFTY?
Nifty is synonym for National Stock Exchange of India.
3. Is Zudio Owned By Tata.
Yes, its promoted By Tata Sons group.