Mumbai, May 18: According to a recent report, BSE Limited may be included in the Nifty 50 Index during the upcoming rebalancing, while IT firm Wipro Limited is likely to be excluded.
A report from domestic brokerage firm Axis Capital suggests that this change could attract approximately $657 million in potential investment flow.
The report indicates that the National Stock Exchange (NSE) is expected to announce the index rebalancing in the latter half of August 2026, with the new changes set to take effect from September 30, 2026.
Eligibility assessments will be based on average data from February 1 to July 31, while current estimates rely on data up to May 15.
The brokerage believes that there will be one change in Nifty 50, five changes in Nifty Next 50, and no changes in the Nifty Bank Index.
The report states, “These potential investment flows are estimated based on a benchmark fund asset under management (AUM) of $45 billion.”
Additionally, the rebalancing may lead to a potential outflow of around $225 million from the Indian stock market.
Companies potentially entering the Nifty Next 50 Index include Polycab India, Hitachi Energy India, IndusInd Bank, and ICICI Prudential AMC. Conversely, companies likely to exit include Indian Hotels Company, REC Limited, Shree Cement, Zydus Lifesciences, and Macrotech Developers.
The brokerage noted that these estimates are based on index rebalancing and the final announcement is anticipated in August.
Changes to the index occur when a qualifying company’s average float market capitalization (AFMC) exceeds that of the smallest company in the index by more than 1.5 times.
Market experts indicate that BSE currently meets this criterion, with its AFMC being 1.5 times greater than that of Wipro. This positions Wipro as the strongest candidate for exclusion from the index.
If only one company is replaced in Nifty 50, the estimated one-sided passive investment flow could reach approximately $639 million.
Meanwhile, during trading hours, major stock indices showed signs of recovery from early declines, closing nearly flat. The 30-share Sensex rose by 77.05 points, or 0.10%, to close at 75,315.04, while the Nifty gained 6.45 points, or 0.03%, finishing at 23,649.95.
Both indices had initially slipped by nearly 1% at the start of the day but managed to recover losses during morning trading.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment