IndusInd Bank, Nestle India Removed From BSE Sensex; Know Why

Last Updated:May 23, 2025, 09:05 IST

The index reshuffle is expected to trigger capital movements as funds tracking the Sensex adjust their portfolios accordingly.

Tata Group’s Trent Ltd and Bharat Electronics Ltd (BEL) are set to be included in the 30-stock BSE Sensex index, replacing IndusInd Bank and Nestle India, according to the latest rebalancing update from Asia Index Pvt Ltd, a subsidiary of BSE Ltd. These changes will take effect at the start of trading on June 23, 2025.

Market Impact: Portfolio Adjustments Expected

The index reshuffle is likely to prompt significant capital flows as exchange-traded funds (ETFs) and mutual funds tracking the Sensex realign their portfolios to match the new composition.

According to estimates by IIFL Alternate Desk:

• Trent could see inflows of approximately $278 million (Rs 2,400 crore), which is about 2.5 times its average daily volume (ADV).

• BEL is expected to receive around $275 million, or 3.1 times its ADV. BEL, a key player in the defence sector, has surged nearly 37% in the past six months.

On the other hand:

• Nestle India may face outflows of about $210 million (Rs 1,800 crore), which is 7.7 times its ADV, despite a 5% rise in its stock price over the last six months.

• IndusInd Bank, under scrutiny due to governance issues and a suspected internal fraud, could see outflows of $135 million (Rs 1,155 crore), roughly 1.1 times its ADV. The stock has dropped more than 40% in the past year, following news of a Rs 2,329 crore net loss—its first in 20 years—and a Rs 172.58 crore employee fraud case.

Expert Take: ‘Index Rejigs Are Key Market Events’

“Index rejigs are a key event for the market because they help market participants gauge the direction in which funds are moving,” said BSE in a statement. These changes help ensure the index reflects the evolving dynamics of the Indian equity market.

Other Index Rebalancing Updates

BSE 100 Index – New Additions:

• Dixon Technologies (India) Ltd

• Coforge Ltd

• Indus Towers Ltd

Replacements:

• Bharat Forge Ltd

• Dabur India Ltd

• Siemens Ltd

Sensex 50 Index – Changes:

• InterGlobe Aviation Ltd (IndiGo operator) will replace Britannia Industries Ltd

• Shriram Finance Ltd will replace Hero MotoCorp Ltd

Sensex Next 50 Index – New Entrants:

• Britannia Industries Ltd

• Dixon Technologies (India) Ltd

• Coforge Ltd

• Hero MotoCorp Ltd

• Indus Towers Ltd

Outgoing Stocks:

• InterGlobe Aviation Ltd

• Shriram Finance Ltd

• Bharat Forge Ltd

• Dabur India Ltd

• Siemens Ltd

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