The NSE’s benchmark Nifty 50 index will see a major reshuffle on Friday, 29 September, with the new composition effective from Monday, 30 September. Budget airline InterGlobe Aviation (IndiGo) and hospital chain Max Healthcare Institute are poised to enter the index, replacing Hero MotoCorp and IndusInd Bank.
According to Nuvama Alternative & Quantitative Research, the semi-annual rebalancing could trigger passive inflows of about $1.07 billion into the index and outflows of around $747 million, as exchange-traded funds and index funds realign their portfolios.
Biggest inflows on rebalancing day
– InterGlobe Aviation (IndiGo): $362 million
– Max Healthcare Institute: $340 million
– SBI: $80 million
– Siemens Energy India: $53 million
– Solar Industries: $46 million
Add Zee Business as a Preferred Source
Top outflows
– Hero MotoCorp: $284 million
– IndusInd Bank: $205 million
– ICICI Bank: $57 million
– Reliance Industries: $52 million
– HDFC Bank: $52 million
Brokerage data also indicate higher weightings — and fresh inflows — for SBI ($99 million), ITC ($38 million) and Bajaj Finserv ($19 million), while HDFC Bank ($66 million), Reliance Industries ($52 million) and ICICI Bank ($47 million) could see outflows as their weights are cut.
Changes in Nifty Next 50
The Nifty Next 50 index will add Solar Industries ($59 million), Siemens Energy India ($53 million), Mazagon Dock Shipbuilders ($38 million) and Hindustan Zinc ($34 million). Exiting will be IndiGo ($184 million), Dabur India ($49 million), ICICI Prudential Life Insurance ($38 million) and Swiggy ($27 million).
How NSE selects stocks for Nifty 50
The National Stock Exchange reviews the composition of the Nifty 50 twice a year — in March and September — using the average free-float market capitalisation over the preceding six months. Free-float market cap measures the market value of shares available for trading by the public, excluding promoters’ and locked-in holdings.
Why this matters for investors
Adjustments to the Nifty 50 often lead to sharp price and volume swings as passive funds tracking the index buy and sell to match the new weights. Market participants watch the rejig closely to identify short-term trading opportunities and liquidity shifts in the underlying stocks.
