New Delhi, May 27 -- Trent Ltd, the Tata Group's multibagger fast-fashion company, is having a tough time. After rallying more than 1,000% in the previous five years, concerns around competition and valuation have humbled the stock this year. So far this year, Trent has lost nearly 22%, while the benchmark Nifty 50 index has appreciated 5%.

But Trent's fortunes looked up last week when the Sensex rejig was announced. After making it into the Nifty 50 index in September, Trent is set to replace Nestle India Ltd in the 30-stock Sensex, effective 23June. The Trent stock rallied by as much as 3% following the announcement.

With Trent set to have about a 1.5% weight in the Sensex, its inclusion is expected to bring about $300 million of infl...