Nestle India to exit Sensex on June' 23!

Nestle India will be removed from the 30-stock BSE Sensex on June 23. It will be a part of the index’s semi-annual rejig. Both stocks will be replaced by Trent and Bharat Electronics, which gained popularity recently after being added to the Nifty50 index.According to Nuvama Alternative & Quantitative Research, the exclusion of Nestle India from the Sensex will result in an outflow of $209 million in the stock.

Nestle India is being removed from the 30-share BSE Sensex index. This is part of the index's semi-annual rebalancing and will take effect on June 23. Trent and Bharat Electronics will replace Nestle India and IndusInd Bank in the index. The change is due to Nestle India's underperformance and rising competition, while Trent and BEL have seen strong recent performance. 

Why Nestlé India Was Dropped

1. Lagging Stock Performance

   Over the 12 months leading up to the reshuffle, Nestlé India's share price fell approximately 5%, while the benchmark Nifty index rose around 9%, indicating notable underperformance

   
   

2. Free-Float Market-Cap Criteria

   Inclusion in the Sensex depends heavily on a company’s free-float market capitalization. Nestlé’s average free-float market cap over the past six months was below that of the qualifying entrants — specifically, Tata’s retail arm Trent and defence PSU Bharat Electronics Limited (BEL) 

   
   

3. Macro‑Economic Realignment

   As India’s economy evolves—with a rising proportion of services and defence-oriented investment—the Sensex composition also shifts. It reflected the declining relative weight of FMCG in favour of sectors more aligned with current economic growth, like retail and defence .

   
   

4. Capital Flow Impacts

   The shake-up triggered expected passive fund outflows from Nestlé India — estimates put it around US $210–220 million pulled from the stock. In contrast, Trent and BEL were set to receive inflows of similar or higher amounts