The National Stock Exchange of India (NSE) is poised to unveil its periodic index rebalancing announcement during the latter half of February. While the crucial cutoff period for evaluation has concluded, the definitive adjustments will be formally implemented on March 30, 2026. This event garners significant attention from market participants, especially following a wave of new listings over the past six months, as investors keenly await which indices will welcome these recent debutant stocks.
Nifty 50 Index: Anticipated Status Quo
According to insights from Nuvama Alternative & Quantitative Research, the flagship Nifty 50 index is expected to maintain a status quo outcome. The analysis indicates that no changes are projected for the index constituents, as none of the eligible stocks managed to meet the stringent criteria required to displace any of the existing members. This stability underscores the robust positioning of current large-cap leaders.
Significant Movements in Broader Indices
In contrast to the Nifty 50, a series of notable changes are forecasted across other key indices, including the Nifty Next 50, Nifty 100, Nifty Midcap 150, and Nifty Smallcap 250. These adjustments reflect the dynamic nature of India's equity markets and evolving corporate performances.
Nifty Next 50: Major Inflows and Outflows Expected
Abhilash Pagaria, Head of Nuvama Alternative & Quantitative, highlights several potential inclusions and exclusions for the Nifty Next 50 index. The top candidates for inclusion are Tata Motors, Tata Capital, ICICI Prudential Asset Management Company, Muthoot Finance, and HDFC Asset Management Company or Cummins India.
Conversely, the index may witness the exit of Info Edge (India), Bajaj Housing Finance, JSW Energy, Havells India, and ICICI Lombard General Insurance Company or Zydus Lifesciences.
These shifts are projected to trigger substantial passive fund flows. Tata Motors is estimated to attract the highest inflows at approximately $143 million, followed by HDFC Asset Management Company ($81 million), Muthoot Finance ($69 million), Tata Capital ($19 million), and ICICI Prudential Asset Management Company ($16 million).
On the exclusion side, Info Edge (India) could face the largest outflow of around $79 million, with ICICI Lombard General Insurance Company at $71 million, Havells India at $52 million, JSW Energy at $38 million, and Bajaj Housing Finance at $14 million.
Nifty Midcap 150: Welcoming New Listings
The Nifty Midcap 150 index is anticipated to integrate several newly listed stocks, reflecting their growing market presence. Expected inclusions comprise LG Electronics India, Lenskart Solutions, HDB Financial Services, Anthem Biosciences, and Billionbrains Garage Ventures (Groww).
Simultaneously, the index may see the exclusion of HDFC Asset Management Company, Muthoot Finance, Exide Industries, Sona BLW Precision Forgings, and LIC Housing Finance.
Nifty Smallcap 250: Reshuffling the Deck
For the Nifty Smallcap 250 index, the top projected inclusions are Physicswallah, Piramal Finance, Ajanta Pharma, Exide Industries, and Honeywell Automation India. In contrast, the leading candidates for exclusion are likely to be Laurus Labs, Authum Investment & Infrastructure, Multi Commodity Exchange of India, Radico Khaitan, and Akums Drugs and Pharmaceuticals.
Disclaimer: The views and recommendations presented are those of individual analysts or broking firms and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
