Last Updated:July 03, 2025, 12:51 IST
IndusInd Bank and two-wheeler major Hero MotoCorp may be excluded from the Nifty50
Nifty Rejig
Nifty50 Rebalancing: IndusInd Bank and two-wheeler major Hero MotoCorp may be excluded from the Nifty50 in the upcoming reshuffle due in September, according to calculations by Nuvama Alternative and Quantitative Research. The firm identified IndiGo and Max Healthcare as the top two inclusion candidates.
“IndiGo has already seen substantial positive price action, reflecting market expectations. On the other hand, Max Healthcare appears under-owned on this theme and could attract more buying interest. We estimate that Max Health’s inclusion would imply passive buying of over $400 million (approximately 12 days of average daily volume),” the brokerage stated.
Hero MotoCorp and IndusInd Bank are likely candidates for exclusion from the Nifty50 index in the upcoming September 2025 reshuffle. According to Nuvama, these potential exits could trigger passive outflows of around $244 million for Hero MotoCorp and $255 million for IndusInd Bank. The eligibility cut-off period concludes in July, with the official announcement expected in late August. Any index changes will take effect from September 29.
Nuvama noted that much of the negative sentiment appears to be already priced into the stocks, and significant pressure from passive flows is unlikely until closer to the adjustment date. “We believe any further downside will be more pronounced around the adjustment period,” the brokerage said.
As for the potential inclusions, Nuvama highlighted that Max Healthcare and IndiGo are strong contenders for entry into the Nifty50. However, there is one slim scenario where Max Healthcare might miss out — if Hindustan Aeronautics Ltd. (HAL) outperforms Max Health by around 12% immediately and maintains that lead through the end of July. The brokerage, however, considers this outcome to be highly unlikely.
BSE Unlikely to Make the Cut
There has been speculation about BSE Ltd’s inclusion in the Nifty50. However, Nuvama has dismissed the possibility for the September review, stating that BSE does not meet several key eligibility criteria outlined in the index methodology. In fact, it also sees little to no chance of BSE making it into the Nifty Next 50 either.
That said, Nuvama noted that an inclusion could become plausible if there’s a change in index methodology or if BSE stock rallies over 40% and sustains the momentum through July.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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