Business

IIE DIGITAL DESK :  June 23, 2025 — Shares of BSE Ltd and IndiGo (InterGlobe Aviation) jumped impressively today, rising as much as 3%, amid strong market buzz suggesting their inclusion in the prestigious Nifty 50 index during the semi-annual reshuffle planned for August and effective from September 

BSE Ltd, Asia’s oldest stock exchange, saw its stock rally over 3% to ₹2,772 per share. Its shares have already delivered a 50% return over the past six months and gained more than 13% in just the last month. Analysts attribute this surge to a sharp rise in inflows from passive index funds that track the Nifty 50 .

IndiGo rose roughly 1–3% on the day, trading around ₹5,447. The airline has already gained 23% over the past six months, bouncing back from earlier sector turbulence. Its deep liquidity and strong float metrics make it a strong candidate for the index reshuffle

The Nifty 50 index undergoes revisions twice annually, with the next review in August. Eligible companies are selected based on free-float market capitalization, liquidity thresholds, and trading activity. Inclusion in the index often leads to substantial inflows from mutual funds and ETFs tracking these benchmarks 

Sources say BSE and IndiGo will likely replace underperformers like IndusInd Bank and Hero MotoCorp, which have seen share prices fall sharply—down around 45% and 22% respectively—as the market adjusts to shifting sectoral trends.

These prospective entries underline a broader market recalibration. Passive funds and large institutional investors rebalancing their portfolios for the upcoming index update are creating immediate demand for BSE and IndiGo shares .

Broader market sentiment remains cautious. The Nifty currently trades near 24,913, while the Sensex dropped approximately 705 points amid global risk-off trends. Still, analyst notes emphasize that not all sectors share the same fate; defensive names in capital goods, pharma, and metals continue to provide valuation support.

All eyes now turn to the official announcement in August. Should BSE and IndiGo be formally declared, they will enter the index in September, likely triggering further inflows. Funds tracking the index will be compelled to purchase the newly added shares, bolstering their market performance.

Established Nifty constituents IndusInd Bank and Hero MotoCorp are expected to fall out, potentially prompting sustained pressure on their stock prices. Observers will be monitoring if these companies or others protest the delisting.

BSE and IndiGo are delivering standout gains amid strong expectations of their inclusion in the Nifty 50, a move that often serves as a catalyst for significant institutional investment. As global volatility lingers and the broader market remains subdued, this development offers a rare slice of optimism. The coming months leading up to September will be key as investors recalibrate portfolios around the reshuffled Nifty 50 benchmark.