BSE Ltd Set to Enter Nifty 50 as Wipro Makes Way in September 2026

India's benchmark index is set for a notable change. NSE Indices Ltd has confirmed that BSE Ltd will replace Wipro Ltd in the Nifty 50 index from September 30, 2026, as part of its semi-annual review of broad market indices. The changes will become effective after the close of trade on September 29, 2026, according to the official notification released by NSE Indices on August 10, 2026.

BSE Ltd shares responded sharply to the announcement, rising 0.10% to ₹3,596.10 on August 11, 2026. Wipro shares, on the other hand, slipped 0.90% to ₹183.64 on the same day.

Why BSE Ltd Is Entering the Nifty 50

Index inclusion in the Nifty 50 is not based on opinion or performance alone. It follows a specific methodology centred on free-float market capitalisation, that is, the market value of shares that are freely available for trading, excluding promoter holdings and other locked-in shares.

According to the NSE Indices notification, BSE Ltd's six-month average free-float market capitalisation stood at ₹1,40,879 crore. This is well above the threshold required for inclusion, which demands that an incoming stock's free-float market cap be at least 1.5 times that of the smallest existing Nifty 50 constituent. Wipro, the stock being replaced, had a six-month average free-float market capitalisation of ₹55,930 crore, making it the weakest constituent in the index on this measure.

Additionally, only stocks that are available for trading in NSE's futures and options segment are eligible for Nifty 50 inclusion. BSE Ltd meets this criterion. The next two eligible companies by free-float market capitalisation: TVS Motor Company at ₹84,566 crore and Divi's Laboratories at ₹82,930 crore were not considered, as the two smallest remaining Nifty 50 constituents after Wipro's removal did not meet the required 1.5 times threshold relative to those candidates. The replacement will also apply to the Nifty50 Equal Weight index.

What the Change Means for Passive Fund Flows

When a stock enters or exits the Nifty 50, index funds and exchange-traded funds that track the index are required to adjust their portfolios accordingly. This creates what is known as passive fund flows, buying in the stock being added and selling in the stock being removed.

BSE Ltd's inclusion in the Nifty 50 is expected to attract passive inflows of approximately $741 million as index-tracking funds build their positions in the stock ahead of the rebalancing date. Wipro, meanwhile, is expected to see passive outflows of around $246 million as those same funds reduce their holdings.

For context, Wipro will not disappear from the broader index family. It will move into the Nifty Next 50 index following its Nifty 50 exclusion, which according to Nuvama estimates could result in net inflows of around $91 million into the stock from funds tracking that index.

Wipro's Exit Reflects a Difficult Period for the IT Sector

Wipro's removal from the Nifty 50 comes after a prolonged period of underperformance. The stock has fallen nearly 31% in CY26 so far, weighed down by weak discretionary technology spending among global clients, slower decision-making on outsourcing contracts, and broader concerns about the pace of recovery in traditional IT services demand. 

Its free-float market capitalisation has shrunk considerably relative to peers, which ultimately led to it becoming the most vulnerable constituent in the index.

Broader Nifty Next 50 Changes

The September 2026 rejig extends beyond the Nifty 50. The Nifty Next 50 index, which tracks the 50 largest companies outside the Nifty 50, will also see significant changes from the same date.

Vedanta Aluminium, Polycab India, Hitachi Energy India and Vodafone Idea will be added to the Nifty Next 50. On the exit side, Indian Hotels Company, United Spirits, REC, Shree Cement and Lodha will leave the Nifty Next 50. Indian Hotels is expected to see the largest outflow among the exclusions at approximately $118 million, followed by United Spirits at $83 million, REC at $79 million, Shree Cement at $64 million and Lodha at $62 million.

About BSE Ltd

BSE Ltd, established in 1875, is Asia's oldest stock exchange and one of the largest in the world by number of listed companies. It operates equity, derivatives, currency and debt trading platforms, provides clearing and settlement services, and licenses market data and indices including the widely tracked S&P BSE Sensex. Its Q1FY27 net profit rose 62.03% YoY to ₹874 crore, reflecting strong growth in transaction revenues driven by rising retail participation, higher derivatives activity and growing demat account penetration across India.

Conclusion

The addition of BSE Ltd to the list of Nifty 50 companies and exclusion of Wipro is an indication that the process of index construction has been successfully implemented and is responding appropriately to changes in market valuation and not reputation alone. The addition of BSE to the index indicates the high valuation that capital market infrastructure companies have received in the past few years, while the exclusion of Wipro and its inclusion in the Nifty Next 50 demonstrates the pressure that has been exerted on the industry.