With the Trent becoming a member of much coveted Nifty50 index, the participation of Tata Group companies in the benchmark index has climbed to a record. The largest conglomerate in the country will also have the highest number of companies in the index, barring public sector undertakings (PSUs).

However, despite an increased number of participations in the index, the combined weightage of these six companies will be lower than what HDFC Bank alone commands in the gauge. To be sure, HDFC Bank has a greater number of shares available for trade compared to Tata Consultancy Services (TCS) or even Reliance Industries (RIL) in that matter.

As of Friday, HDFC Bank boast a weight of 11.3%, which was followed by RIL at 9.3%. The combined weight of six Tata Group companies – TCS, Tata Motors, Titan, Tata Steel, Tata Consumer Products and Trent – will be around 10%. These six companies account for 84% of the Tata group valuation, which stood at ₹34.2 lakh crore as Fridays close. Shares of Trent have rallied as much as 128% in 2024, making it the best performer among the group companies.

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HDFC Bank, the third most valued firm after the RIL and TCS has almost zero promoter holdings. That makes the entire outstanding equity of the bank available for trade. In contrast 72% of the TCS and 50.3% of RIL are held with the promoters.

Tata Group has about 25 companies listed on the bourses. With the latest addition, one in every four companies in the group is also a Nifty50 member. While the inclusion Bharat Electronics (BEL) will increase the PSU count to eight, Tata Group will have higher participations from the private sector.

The Index Maintenance Sub-Committee (Equity) of NSE Indices on Friday made the changes in the 50-stock index and the same will become effective from September 30, 2024 (close of September 27, 2024). While Trent and Bharat Electronics found places in the Index, LTI Mindtree and Divis Laboratories were excluded from the gauge.

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