Why India’s Oldest Stock Exchange Could Join the Elite Index
BSE Ltd is expected to become part of the benchmark NIFTY 50 during the September 2026 index reshuffle. If this change is confirmed, Wipro Ltd is the most likely company to be removed from the index.
The possible inclusion reflects BSE’s remarkable growth over the past year, fueled by rising trading activity, increased retail investor participation, and strong performance in its derivatives segment. Meanwhile, Wipro has struggled amid weak sentiment in the IT sector and concerns over the impact of artificial intelligence on traditional outsourcing services.
How Nifty 50 Inclusion Is Decided
The Nifty 50 consists of 50 of the largest and most liquid companies listed on the National Stock Exchange of India. Stocks are selected based on free-float market capitalization and liquidity criteria.
According to market analysts, a stock can replace an existing constituent if its Average Float Market Capitalization (AFMC) exceeds 1.5 times that of the smallest eligible company in the index. BSE has now crossed this threshold and has overtaken Wipro on this measure, making it a strong candidate for inclusion.
BSE Shares Surge Over 63%
BSE has been among the best-performing financial stocks in India over the last year. Its shares have gained more than 63 percent due to:
- Sharp increase in daily trading volumes
- Rising retail participation in stock markets
- Revival in derivatives trading
- Strong growth in weekly Sensex options
These factors have significantly boosted the company’s earnings and market valuation.
Wipro Faces Continued Pressure
Wipro has had a challenging year, with its stock declining more than 25 percent. The company has been affected by:
- Sluggish demand in the IT sector
- AI-related concerns over traditional IT services
- Weak quarterly earnings
- Flat to negative revenue guidance
If Wipro exits the Nifty 50, passive index funds and ETFs tracking the benchmark may trigger substantial outflows from the stock.
Impact on Investors and Markets
If BSE joins the Nifty 50, analysts estimate passive inflows of around $639 million into the stock from index-linked funds. On the other hand, Wipro could witness passive outflows of approximately $206 million if it is removed.
Inclusion in the Nifty 50 is often seen as a major milestone because it increases visibility, attracts institutional investment, and improves stock liquidity.
Final Decision Expected in September 2026
The official announcement regarding the Nifty 50 reshuffle is expected ahead of the September 2026 rebalancing. If confirmed, BSE’s inclusion would mark a historic achievement for India’s oldest stock exchange and underscore the changing dynamics of the Indian equity market.
