Key Takeaways:
- The BSE Nifty 50 entry will take effect on September 30.
- Wipro faces $246 million in estimated passive fund outflows
- BSE could receive $741 million from index-linked fund inflows
BSE Ltd will become part of the Nifty 50 index from September 30, replacing Wipro after more than 24 years in the benchmark. The change reflects differences in free float market capitalisation and is expected to trigger significant portfolio adjustments among funds that track the index.
BSE Meets Nifty 50 Inclusion Criteria
BSE recorded an average 6-month free float market capitalisation of ₹1,40,879 crore, compared with ₹55,930 crore for Wipro, the smallest eligible Nifty 50 constituent being replaced. The figures support the company’s BSE Nifty 50 entry; as per index methodology, an eligible company must have an average free float market capitalisation of at least 1.5 times that of the smallest constituent.
BSE has gained 36.8% so far in 2026 and rose 4% on Monday following the announcement of its BSE Nifty 50 entry. Wipro, meanwhile, has declined 30.6% during the year and ended Monday’s session 1.1% lower.
The index change will also affect passive investment flows. Funds and exchange-traded products that track the Nifty 50 typically adjust their holdings when the index composition changes. Nuvama Alternative and Quantitative Research estimates that BSE could receive about $741 million in passive inflows, while Wipro could face approximately $246 million in passive outflows.
Wipro has been part of the Nifty 50 since January 17, 2002. Its removal will therefore mark the end of a more than 24-year presence in the benchmark.
The change also highlights how shifts in market capitalisation can influence the composition of India’s most widely followed equity index. For companies, inclusion can also affect the institutional investor base because index-tracking funds need to hold constituents according to their respective benchmark weights, making the BSE Nifty 50 entry significant for potential institutional investment flows.
TVS Motor And Divi’s Laboratories Remain Outside The Index
The latest review also considered TVS Motor Company and Divi’s Laboratories for potential inclusion. TVS Motor had an average free float market capitalisation of ₹84,566 crore, while Divi’s Laboratories stood at ₹82,930 crore.
Neither company was selected because the average free float market capitalisation of the 2 lowest-ranked existing Nifty 50 constituents, after excluding Wipro, did not meet the required comparison threshold.
HDFC Life Insurance Company had an average free float market capitalisation of ₹65,666 crore, while Tata Consumer Products stood at ₹73,054 crore. The methodology therefore did not result in either TVS Motor or Divi’s Laboratories entering the benchmark during this review.
The National Stock Exchange also announced changes to other major indices, including the Nifty 500, Nifty 100, and Nifty Next 50.
The BSE Nifty 50 entry comes as the exchange’s stock has recorded a strong gain during 2026, while Wipro has faced a significant decline over the same period. The index reshuffle will take effect on September 30, when passive funds are expected to realign their portfolios with the updated Nifty 50 composition.
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