The upcoming Nifty rebalancing may result in inflows of approximately $657 million, as per a report. BSE Ltd is anticipated to join the benchmark index, potentially replacing IT giant Wipro Ltd. The NSE indices rebalancing announcement is projected for the second half of August 2026, with changes taking effect from September 30, 2026.
The eligibility evaluation is grounded on six-month average data from February 1 to July 31, with current estimates utilizing data up to May 15. The brokerage foresees one constituent change in Nifty 50, five changes in Nifty Next 50, and no alterations in Nifty Bank. The assumed benchmark fund AUMs of $45 billion are the basis for the projected flows, as highlighted by the brokerage.
The potential rejig could lead to outflows of about $225 million from Indian equity markets. In the Nifty Next 50 index, potential inclusions comprise Polycab India, Hitachi Energy India, IndusInd Bank, and ICICI Prudential AMC. Likely exclusions may involve Indian Hotels Company, REC Limited, Shree Cement, Zydus Lifesciences, and Macrotech Developers. The anticipated changes are rooted in index rebalancing estimates, with final announcements expected in August.
An index reshuffle is initiated when at least one eligible stock’s Average Float Market Capitalisation (AFMC) surpasses 1.5 times that of the smallest index constituent. Market experts suggest that BSE currently meets this criterion, with its AFMC exceeding 1.5 times that of Wipro, positioning the IT stock as a probable exclusion from the index. If a single-stock substitution occurs in the 50-share basket, estimated one-way passive inflows could be around $639 million.
Equity benchmarks were trading flat in the latest update, recouping early losses. The Sensex was at 75,151, down 86 points or 0.12%, while the Nifty was at 23,592, lower by 50.65 points or 0.21%. Earlier, both indices dipped nearly 1% each before rebounding in morning trade.
