Sensex rejig: Trent likely to be replaced in next reshuffle — These two stocks are top contenders
Published 2026-05-20 · Bazaar Watch Research
What Happened
Trent is likely to be removed from the Sensex index during its upcoming reshuffle in June, according to Abhilash Pagaria, Head of Nuvama Alternative & Quantitative.
This potential exclusion is attributed to a relative decline in Trent's free-float market capitalization, following a period of underperformance.
The market event suggests that two other unnamed stocks are currently considered top contenders to replace Trent in the Sensex.
Why It Matters
Sensex inclusion or exclusion significantly impacts stocks as passive funds (like ETFs and index funds) tracking the index are forced to buy or sell shares.
For retail investors, this means potential selling pressure on Trent as index funds offload shares, and buying interest in the new entrants.
Changes in the Sensex can also affect a stock's visibility and institutional interest, influencing its long-term perception.
Who Gets Affected
Shareholders of Trent could experience increased selling pressure on their holdings if the exclusion is confirmed.
Investors in Sensex-tracking mutual funds and ETFs will see their portfolios adjusted to reflect the new index composition.
The two unnamed companies being considered as replacements (their names are unclear from the provided information) could see increased demand and investor interest.
Impact on Stock / Sector
Short-term (1-5 days): Trent may face immediate selling pressure as index funds begin to rebalance their portfolios in anticipation or confirmation of the rejig. The potential new entrants might see a slight uptick.
Medium-term (1-3 months): If excluded, Trent might see reduced institutional ownership and liquidity. The new entrants could benefit from sustained buying by passive funds and increased analyst coverage.
Watch Next
Monitor for the official announcement from BSE regarding the Sensex rejig, which typically happens a few weeks before the effective date.
Look out for the names of the two stocks that will eventually replace Trent, as