India's benchmark Nifty50 index is set for a significant change as BSE Ltd replaces Wipro in the latest semi-annual review conducted by NSE Indices. The revised index composition will come into effect from September 30, 2026, with September 29 being the final trading session under the current structure.
The reshuffle marks the end of Wipro's nearly three-decade presence in the Nifty50 and reflects BSE's strong growth in free-float market capitalisation, enabling it to qualify for inclusion in India's flagship stock market index.
Why is BSE replacing Wipro in the Nifty50?
The inclusion of BSE is based on NSE Indices' methodology, which primarily considers the average free-float market capitalisation of eligible companies.
During the review period, BSE recorded a significantly higher six-month average free-float market capitalisation than Wipro, comfortably meeting the eligibility criteria required for entry into the benchmark index.
Under NSE's selection rules, a company becomes eligible to replace an existing constituent when its free-float market capitalisation is at least 1.5 times that of the lowest-ranked eligible company in the index. BSE satisfied this requirement, leading to its inclusion.
Wipro's exit ends a long-standing presence
Wipro has been associated with the Nifty50 since the benchmark index was launched, making it one of its longest-serving constituents.
Apart from a temporary exclusion during its corporate demerger in 2013, the IT services company has remained part of India's most closely tracked equity index for nearly three decades.
Its removal does not impact its stock market listing or business operations but means it will no longer be represented in the benchmark index tracked by institutional investors, mutual funds and exchange-traded funds (ETFs).
Other companies were also evaluated
BSE was not the only company considered during the latest index review.
NSE Indices also assessed other eligible companies based on free-float market capitalisation. However, they did not meet the required replacement threshold under the index methodology.
As a result, BSE emerged as the only company that fully satisfied the eligibility criteria for inclusion in the Nifty50 during the current review cycle.
What BSE's inclusion means for investors
Joining the Nifty50 is considered a major milestone for any listed company.
Inclusion in the benchmark index generally increases visibility among domestic and global investors, as many passive investment funds and index-tracking ETFs automatically adjust their portfolios to reflect changes in index composition.
BSE's addition could therefore lead to higher institutional participation and increased trading activity as funds rebalance their holdings before the effective date.
Broader changes across NSE indices
The latest review is part of NSE Indices' regular semi-annual rebalancing exercise, which also includes updates across several other benchmark indices.
Apart from the Nifty50, revisions have been announced for multiple market indices, including the Nifty 100, Nifty 500, Nifty Midcap 150, Nifty Smallcap 250, Nifty Next 50, Nifty Next 100 and Nifty India FPI 150 Index.
These periodic reviews ensure that benchmark indices continue to reflect the evolving structure of India's equity markets based on objective eligibility criteria.
What investors should know
The revised Nifty50 composition will become effective from September 30, 2026.
For investors holding index funds or ETFs tracking the Nifty50, portfolio adjustments are expected ahead of implementation as fund managers rebalance holdings to match the new benchmark.
The reshuffle highlights changing market dynamics, with BSE's growing market capitalisation securing its place among India's largest listed companies while bringing an end to Wipro's long-standing membership in the country's premier equity index.
Key Highlights
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BSE will replace Wipro in the Nifty50 from September 30, 2026.
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Wipro's nearly three-decade presence in the benchmark index is coming to an end.
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BSE qualified after recording a significantly higher average free-float market capitalisation.
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The index reshuffle follows NSE Indices' semi-annual review.
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Wipro will remain a listed company despite its removal from the Nifty50.
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BSE's inclusion is expected to increase institutional and passive fund investments.
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Index-tracking mutual funds and ETFs will rebalance portfolios before the effective date.
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Several other NSE indices are also being revised as part of the latest review.
FAQs
1. Why is Wipro being removed from the Nifty50?
Wipro is being replaced because BSE met the eligibility criteria based on higher average free-float market capitalisation under NSE Indices' methodology.
2. When will BSE join the Nifty50?
BSE will officially become part of the Nifty50 on September 30, 2026.
3. When will Wipro exit the Nifty50?
Wipro will cease to be a constituent of the Nifty50 after the close of trading on September 29, 2026.
4. Does Wipro's exit affect its stock market listing?
No. Wipro will continue to remain listed and traded on stock exchanges. The change only affects its membership in the Nifty50 index.
5. Why is free-float market capitalisation important?
Free-float market capitalisation measures the value of shares available for public trading and is a key factor used in determining index eligibility.
6. What benefits does BSE gain by joining the Nifty50?
Inclusion typically increases a company's visibility, attracts passive investment flows and may improve liquidity in its shares.
7. Will index funds be affected?
Yes. Mutual funds and ETFs tracking the Nifty50 are expected to rebalance their portfolios to reflect the revised index composition.
8. Were other companies considered for inclusion?
Yes. NSE Indices evaluated other eligible companies during the review, but BSE was the only one that met the required criteria.
9. How often is the Nifty50 reviewed?
The Nifty50 undergoes periodic semi-annual reviews conducted by NSE Indices.
10. What other indices have been revised?
Changes have also been announced for several indices, including the Nifty 100, Nifty 500, Nifty Midcap 150, Nifty Smallcap 250, Nifty Next 50 and other benchmark indices.
