Trent, the retailer from the house of Tatas, entered the Nifty today. There’s nothing new about stocks moving in and out of the Nifty – the index rebalances twice a year. But there are times when a stock moving into the Nifty should be looked at carefully as it might indicate more than what is obvious. Does the inclusion of a standalone retailer suggest that the worst is over for the sector? Also remember: It is not easy to get included in the Nifty. It requires a company to reach a certain market cap and trading volume. And that happens when there is fundamental growth in the business. So, when a company from a highly competitive sector is able to show improvement, it is time to look at other players in the same space without the baggage of bias which the street has been carrying for years.
