The BSE will announce its semi-annual Sensex reshuffle today, May 22. Experts anticipate that Hindalco Industries will be replacing Trent in the 30-share key benchmark.
Ahead of the Sensex reshuffle announcement on Friday, the market consensus indicates that Hindalco is likely to be included in the Sensex, while Trent may face exclusion, notes Aakash Shah, Technical Analyst – Technical Research at Choice Broking.
Created with AI. Errors are possibleHindalco likely to enter Sensex, Trent seen to exit
From a technical perspective, Shah said Hindalco has shown strong relative strength with a clear higher-high and higher-low structure on the charts, supported by improving volumes and sustained institutional buying. “The stock continues to outperform its sector peers, indicating positive momentum ahead of the reshuffle,” he further said.
On the other hand, Shah said Trent has witnessed weakening momentum after a strong rally seen earlier. “The stock is currently trading in a consolidation phase with softer relative strength and reduced buying traction on the charts,” he stated.
Technically, inclusion generally supports sentiment due to expected passive inflows and stronger liquidity, while exclusion candidates may witness temporary pressure because of ETF-related outflows and profit booking, Shah concluded.
As per the brokerage’s reading of the Sensex methodology and latest market-cap data, the change would be effective with the June 19 index adjustment after the announcement on Friday, May 22.
“The exclusion could result in passive outflows of approximately USD 257 million,” the brokerage estimated.
The brokerage further pointed out the likely selling pressure from index funds and ETFs that mirror the Sensex. According to the note, Trent’s recent underperformance has eroded its free-float market cap ranking, pushing it below key eligibility thresholds within the BSE universe.
Sensex Rejig announcement: Hindalco vs Shriram Finance
Regarding the potential additions, Nuvama has identified Hindalco Industries and Shriram Finance as the two “key contenders” to take Trent’s place in the Sensex basket.
Although Shriram Finance currently leads in terms of free-float market capitalization, the brokerage noted that Hindalco might have a better shot at being selected.
“We believe Hindalco Industries may have a relatively higher probability of inclusion, supported by the index committee’s preference for broader sectoral representation within the BSE universe,” the report said, adding that the final call rests with the Sensex Index Committee.
Nuvama also highlighted that “despite the methodology framework, there appears to be a degree of subjectivity in the final selection of the potential inclusion candidate.”
Shares of Trent on Thursday ended at Rs 4170.05, up Rs 71.55 or 1.75 per cent from the previous close of Rs 4,098.50, on the BSE.
Shares of Trent have traded in the negative zone over the past year two years, shedding 10.65 per cent of their value.
During 2025, it stood out as one of the weakest performers among both the Tata group stocks. Although a sharp post-Q4 rally of almost 26 per cent helped claw back some of those year-to-date losses, the stock remains down nearly 5 per cent over the past one month.
Shares of Hindalco Industries on Thursday ended at Rs 1099, Rs 13.10 or 1.21 per cent higher from the previous close of Rs 1,085.90, on the BSE.
The shares of Hindalco have rallied 65.80 per cent in the last one year and remain higher by 22.79 per cent on YTD basis.
Shriram Finance Share Price
Shares of Shriram Finance Ltd on Thursday ended at Rs 914.85, down Rs 8.60 or 0.93 per cent from the previous close of Rs 923.45, on the BSE.
In the last one year, the shares rose 39.12 per cent. However, on YTD basis, the stock is down 10.28 per cent.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
