BSE To Join Nifty 50, Wipro To Exit From September 30 In Index Rejig

BSE share price and Wipro share price will remain in focus after the National Stock Exchange (NSE) announced changes to the Nifty 50 as part of its semi-annual index review. BSE will replace Wipro in the benchmark index, with the changes taking effect after the close of trading on September 29.

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BSE To Enter Nifty 50 For First Time

BSE will be included in the Nifty 50 for the first time following the latest review. The benchmark index is tracked by exchange-traded funds, index funds and other passive investment products, making changes to its constituents relevant for funds that replicate the index.

Following its inclusion, passive funds tracking the Nifty 50 would generally need to add BSE shares to align their portfolios with the revised index. The extent of any such buying will depend on factors including the size of the funds, BSE’s index weight and the share price around the implementation date.

The BSE share price could therefore remain a key market focus as investors assess the impact of the index inclusion ahead of September 30.

Wipro To Move To Nifty Next 50

Wipro will be removed from the Nifty 50 and included in the Nifty Next 50 under the latest changes.

This marks the first removal of Wipro from the Nifty 50 since the benchmark was launched, excluding a temporary period between April and September 2013. The earlier exclusion followed the demerger of the company’s non-IT services businesses.

With Wipro leaving the Nifty 50, funds tracking the benchmark will no longer require exposure to the stock as part of their index portfolios. At the same time, its inclusion in the Nifty Next 50 could bring buying interest from funds tracking that index.

The Wipro share price will therefore be watched as funds adjust their holdings across the two indices.

Nifty 100 And Nifty Next 50 Also See Changes

The latest review includes changes across several NSE indices. Five stocks, BSE, Hitachi Energy India, Polycab India, Vedanta Aluminium Metal and Vodafone Idea, will enter the Nifty 100. Indian Hotels, Lodha Developers, REC, Shree Cement and United Spirits will exit the index.

The Nifty Next 50 will also have five additions: Hitachi Energy India, Polycab India, Vedanta Aluminium Metal, Vodafone Idea and Wipro.

The Nifty 500 will see the largest number of changes, with 27 stocks entering the index and an equal number moving out.

Changes Effective From September 30

The revised constituents will become effective after the market closes on September 29, with the changes taking effect on September 30.

The implementation is expected to require index-tracking funds to rebalance their portfolios in line with the new constituents. It will affect trading as passive funds adjust their portfolios before the effective date for BSE and Wipro.