NSE indices shakeup to trigger $633 million inflows for 5 PSU stocks

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The NSE Indices Committee recently announced the September 2024 semi-annual reshuffle, affecting major indices such as the Nifty 50, Next 50, Nifty 100, and Nifty Bank. Effective September 30th, these adjustments are expected to significantly impact fund flows within the market.

Two sectors, in particular, are poised for significant activity: retail and defense. In the Nifty 50, Trent and Bharat Electronics are set for inclusion. Meanwhile, Divis Labs, LTI Mindtree, Bharat Heavy Electricals, JSW Energy, Lodha, NHPC, and Union Bank are entering the Nifty Next 50. Conversely, Trent, Bharat

Electronics, Colgate, SRF, Marico, SBI Card, and Berger Paints will exit the index.

In the Nifty Bank index, Canara Bank will replace Bandhan Bank in a significant change.

However, simply listing the entries and exits doesn’t capture the full impact. The real significance lies in understanding the resulting inflows and outflows of funds. Let’s explore this in detail, particularly focusing on five PSU stocks and the anticipated $633 million inflow boost following the rejig.

Bharat Electronics Limited: The entry of this public sector aerospace and defense electronics company into the Nifty 50 index is expected to generate a significant net inflow of $470 million.


Bharat Heavy Electricals Limited: Its inclusion in the Nifty Next 50 is anticipated to result in a net inflow of $49 million for this PSU giant.

National Hydroelectric Power Corporation: NHPC's inclusion in the Nifty Next 50 is expected to boost its coffers with an inflow of $39 million.

Union Bank: As it joins the Nifty Next 50, this PSU bank is anticipated to experience an inflow of $31 million.

Canara Bank: Securing a spot in the Nifty Bank index at the expense of Bandhan Bank, the lender is set to receive a net inflow exceeding $44 million.

These substantial inflows highlight the impact of the NSE index rejig, especially for these PSU stocks. It will be interesting to see how these companies utilize this financial boost for growth and expansion in the coming months.

The reshuffling also emphasizes the dynamic nature of the market, reminding investors to stay informed and make well-considered decisions.

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