BSE Ltd is set to become part of the benchmark Nifty 50 index, replacing information technology major Wipro Ltd as part of NSE Indices’ semi-annual review. The changes will come into effect after market hours on Sept 29, 2026, and will be applicable from Sept 30, 2026.
The Index Maintenance Sub-Committee (Equity) of NSE Indices Ltd approved the inclusion of BSE after evaluating eligible companies based on their average free-float market capitalisation.
Why this rejig
According to the review, BSE recorded an average free-float market capitalisation of ₹1,40,879 crore, significantly higher than Wipro’s ₹55,930 crore. NSE said BSE met the eligibility criteria as its six-month average free-float market capitalisation was at least 1.5 times that of the smallest constituent eligible for replacement.
NSE Indices said TVS Motor Company and Divi’s Laboratories, which were the next eligible candidates, were not selected for inclusion as their average free-float market capitalisation stood at ₹84,566 crore and ₹82,930 crore, respectively.
Only companies available for trading in the NSE Futures and Options segment qualify for inclusion in the Nifty 50 index.
The replacement of Wipro with BSE will also be reflected in the Nifty50 Equal Weight index.
Impact of the move
Following its exit from the benchmark index, Wipro will become part of the Nifty Next 50.
Nifty 50 is tracked by several index funds, exchange-traded funds (ETFs) and global passive investment products. Once BSE enters the index, these funds will have to buy BSE shares to replicate the Nifty 50 portfolio.
This creates additional demand for BSE shares and could support the stock price around the inclusion date.
More institutional participation could increase trading volumes and improve liquidity. Global investors who benchmark India exposure against the Nifty 50 may start tracking BSE more closely.
What changes for Wipro
On the other hand, funds tracking the Nifty 50 will have to remove Wipro from their portfolios after its exclusion. This may lead to automatic selling of Wipro shares by index funds and ETFs. Such selling can create short-term downward pressure on the stock.
Losing Nifty 50 status may reduce Wipro’s exposure among global passive investors.
However, Wipro will not lose its business fundamentals because of index exclusion. The company will move to the Nifty Next 50, which is still a major index tracked by investors. If Wipro’s earnings improve, the stock can recover regardless of index status.
