Nifty 50 [NIFTY50] Shake-Up: BSE [BSE] Poised to Replace Wipro [WIPRO] in Key Index Rejig?
Leading brokerage Axis Capital projects a significant change in the Nifty 50 index, with BSE potentially replacing Wipro during the upcoming semi-annual rebalancing, triggering substantial fund flows.
Anticipation is building around the National Stock Exchange’s (NSE) semi-annual index rebalancing, particularly for the prominent Nifty 50 [NIFTY50] index. A major shift is on the cards, with market observers closely watching for potential inclusions and exclusions.
According to a projection by Axis Capital, the multi-exchange operator BSE [BSE] is expected to secure a spot in the elite Nifty 50 index. This move would likely come at the expense of IT services giant Wipro [WIPRO]. Axis Capital anticipates that the official announcement regarding these changes will be made in August, with the new index composition taking effect from September 30, 2024.
Should BSE [BSE] be included, it could attract significant passive fund inflows. Projections suggest an estimated $657 million (approximately ₹5,480 crore at current exchange rates) might flow into BSE shares from index-tracking funds. Conversely, Wipro [WIPRO] could face considerable outflows, estimated at around $225 million (approximately ₹1,878 crore), as index funds adjust their portfolios to reflect the updated Nifty 50 composition.
Beyond the Nifty 50, Axis Capital also expects several reshuffles within the Nifty Next 50 index, which tracks the 50 companies after the Nifty 50. These index adjustments are crucial as they influence the buying and selling activity of passive funds, which are mandated to mirror the index they track. This often leads to increased volatility and price movements for the affected stocks around the rebalancing period.
Investors will be keenly awaiting the official announcement from the NSE in August to confirm these anticipated changes and understand their full implications for the market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Please consult your financial advisor before making any investment decisions. StockTips.in is not a SEBI-registered investment advisor.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Please consult your financial advisor before making any investment decisions. StockTips.in is not a SEBI-registered investment advisor.