- Shares of Bombay Stock Exchange are not eligible for Nifty 50 inclusion as per NSE rules
- Axis Capital suggested BSE could replace Wipro in Nifty 50, causing $657 million inflows
- Industry sources denied BSE's inclusion in the upcoming Nifty 50 index rejig
Shares of Bombay Stock Exchange (BSE) are not eligible for Nifty 50 inclusion as the stock is not a part of the NSE 100 index, sources told NDTV Profit on Tuesday, May 19. The clarification comes after domestic brokerage Axis Capital on Monday suggested that the upcoming Nifty 50 index rejig will include BSE, which will replace Wipro. The brokerage said the inclusion could potentially lead to inflows worth $657 million. On the other hand, the rejig could also result in potential fund outflows worth $225 million from the Indian stock market, as per Axis Capital. However, industry sources have denied the entry of BSE in the Nifty 50 index rejig.
''The NSE indices rebalancing announcement is due in the second half of August, effective from 30-Sep-2026. To calculate the eligibility for an inclusion or exclusion, the Index Maintenance Sub-committee assumes six-month average data for the prior period from 1 Feb to 31 Jul. Based on the data from 1 Feb to 15 May, we expect one constituent change in Nifty 50, five constituent changes in Nifty Next 50, and no change in Bank Nifty index,'' said Axis Capital in its report on May 18.
Analysts at Axis Capital added, ''Based on the methodology and the prevaling prices as on 15-May-2024, we expect the changes.'' The flows are hased on assumed benchmark fund AUMs of $45 billion. Nifty Next 50 could also see several inclusions including Polycab India, Hitachi Energy India, IndusInd Bank, and ICICI Prudential AMC. The potential index exclusions include Indian Hotels, REC, Shree Cement, Zydus Lifesciences, and Lodha Developers, according to Axis Capital. The changes are based on index rebalancing estimates, with the announcement expected in August.
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