BSE Set to Join Nifty 50, Wipro to Exit in NSE’s Semiannual Index Reshuffle
MUMBAI – A significant shake-up in India’s benchmark equity indices is on the horizon, with BSE Ltd slated to replace IT giant Wipro Ltd in the prestigious Nifty 50 index. This key change comes as part of the National Stock Exchange (NSE) Indices’ semi-annual review, an exercise that recalibrates the composition of its leading market gauges.
The Index Maintenance Sub-Committee (Equity) of NSE Indices Ltd confirmed the replacement, which will officially take effect from September 30, 2026. The last day of trading for the current index composition will be September 29, 2026.
Market Capitalization Driving the Shift
The decision to include BSE Ltd in the Nifty 50 is underpinned by its robust market capitalization performance. According to the review, BSE boasts an impressive average free-float market capitalisation of Rs 1,40,879 crore. This significantly outpaces Wipro’s average free-float market capitalisation of Rs 55,930 crore, which led to its exclusion.
“BSE Ltd. (average free-float market capitalization Rs. 1,40,879 crores) has been included in Nifty 50 index as the 6-month average free-float market capitalization of the company within eligible universe is at least 1.5 times the 6-month average free-float market capitalization of the smallest constituents i.e. Wipro Ltd. (average free-float market capitalization Rs. 55,930 crores).”
This rule dictates that for a new entrant, its free-float market capitalization must be at least 1.5 times that of the smallest constituent it is replacing. BSE’s market cap comfortably met this criterion, highlighting its growing stature in the Indian financial market.
Other Contenders and Eligibility Criteria
While BSE’s entry was confirmed, other strong contenders were also assessed. TVS Motor Company Ltd and Divi’s Laboratories Ltd, with average free-float market capitalisations of Rs 84,566 crore and Rs 82,930 crore respectively, were considered but ultimately not included in the Nifty 50. Their market capitalizations, though substantial, did not meet the stringent inclusion rules this time.
The review further clarified the status of other current Nifty 50 constituents. HDFC Life Insurance Company Ltd and Tata Consumer Products Ltd, with average free-float market capitalisations of Rs 65,666 crore and Rs 73,054 crore respectively, were retained. The NSE noted that their market capitalizations were less than 1.5 times the six-month average free-float market capitalisation required for inclusion if they were new candidates, but as existing constituents, different rules apply for exclusion.
A crucial eligibility criterion for Nifty 50 inclusion is that only stocks available for trading in NSE’s Futures & Options (F&O) segment are considered.
Broader Index Implications
The impact of this reshuffle extends beyond the Nifty 50. The replacement of Wipro with BSE will also be mirrored in the Nifty50 Equal Weight index, ensuring consistency across related indices.
Following its departure from the Nifty 50, Wipro will transition into the Nifty Next 50 index. This index, often seen as a breeding ground for future Nifty 50 constituents, will also welcome new entrants including Hitachi Energy India Ltd, Polycab India Ltd, Vedanta Aluminium Metal Ltd, and Vodafone Idea Ltd.
The NSE elucidated the hierarchical structure of its indices, stating that constituents of both the Nifty 50 and Nifty Next 50 indices are derived from the broader Nifty 100 index. Any company within the reconstituted Nifty 100 that does not make it into the Nifty 50 automatically finds a place in the Nifty Next 50.
BSE’s inclusion is not limited to the Nifty 50; it will also enter the Nifty 100 index. This will lead to the exit of Indian Hotels Co Ltd, Lodha Developers Ltd, REC Ltd, Shree Cement Ltd, and United Spirits Ltd from the Nifty 100. They will be replaced by BSE, along with Hitachi Energy India, Polycab India, Vedanta Aluminium Metal, and Vodafone Idea. These changes across various indices are also slated for effectiveness from September 30, 2026.
This periodic review by the NSE is a standard exercise designed to ensure that its indices accurately reflect market dynamics and remain representative of India’s evolving economic landscape. Investors and market participants will be closely watching the impact of these changes once they come into effect.
