BSE set to enter Nifty 50 from tomorrow, IT major Wipro to exit. What shareholders must know?

India’s oldest stock exchange, BSE Ltd., is set to enter the NSE’s benchmark Nifty 50 index, replacing IT major Wipro Ltd. as part of the semi-annual index rebalancing. The changes will take effect from September 30, 2026.

BSE has been included in the Nifty 50 after its six-month average free-float market capitalisation came in at Rs 1,40,879 crore. This is at least 1.5 times the six-month average free-float market capitalisation of the smallest constituent in the eligible universe, Wipro, whose average free-float market capitalisation stood at Rs 55,930 crore, according to the NSE release in August.

The inclusion is also expected to trigger sizable passive fund flows into BSE. Axis Capital estimates that BSE could see inflows of $657 million, with index funds likely to buy 15.7 million shares.


Wipro, meanwhile, could face outflows of $225 million, translating into selling of around 114.2 million shares by index funds. Wipro shares have remained under pressure, declining 14% over the last six months and 40% since the beginning of the year.

Should you buy, sell, hold BSE shares?

Macquarie gave BSE the tag of a ‘Challenger’ as it initiated coverage on the stock last week with an ‘Outperform’ rating with a target price of Rs 4,000 apiece. This implies an upside potential of more than 25% from the stock’s previous closing price of Rs 3,191.50 apiece on NSE.

The international brokerage noted that the stock exchange is a share gainer in a 12% TAM CAGR market, which can drive 16% FY26-30 revenue growth and margins toward 70%. CAS however is a near-term drag.

Read more: Market veterans favour value plays over crowded, expensive themes

Jefferies remains cautious and has an ‘Underperform’ call on BSE with a target price of Rs 2,940 apiece, implying around 8% downside potential. The international brokerage flagged risks to BSE’s revenue from domestic proprietary traders, who account for around 50% of notional turnover. It sees headwinds from the STT hike, RBI’s bank guarantee norms and the Closing Auction Session (CAS).

Nuvama last month downgraded the stock’s rating to Hold from Buy, and slashed its target price to Rs 3,240 apiece from Rs 4,090 apiece, listing three key headwinds converging in FY27. The newly introduced closing auction session (CAS) has led to huge confusion among traders, resulting in lower participation. Nuvama highlighted that BSE’s index option premium volumes (ADPTV) of Rs 18,100 crore are the lowest since January 2025.

Rejig beyond Nifty

Beyond the Nifty 50, the upcoming NSE index rebalancing is also set to bring changes to the Nifty Next 50. Wipro, Polycab India, Vedanta Aluminium Metal, Hitachi Energy India, and Vodafone Idea are emerging as leading contenders for inclusion in the index.

Read more: Market rout deepens as crude surge, high US yields batter Indian equities

On the other side, Indian Hotels Company, REC, Shree Cement, United Spirits and Lodha Developers will be excluded candidates in the reshuffle, NSE’s press release showed.

Market outlook

The stock market has been under pressure as renewed uncertainty over US-Iran discussions has pushed Brent crude back above $106, while elevated US Treasury yields continue to keep risk appetite subdued. With the week also bringing key global economic data, oil prices and geopolitical developments are likely to remain important market triggers, analysts say.

“The near-term market tone remains cautious, with the weak Gift Nifty indicating pressure at the start of the week. Persistent FII selling and elevated crude prices could keep sentiment subdued, while domestic institutional buying may offer some cushion. Nifty and Bank Nifty are likely to remain volatile, with traders closely watching the immediate support zones for signs of stability,” Hitesh Tailor of Choice Broking said.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.