BSE May Replace Wipro In Nifty 50 September Rejig; Passive Inflows Seen at $639 Million

Shares of BSE Ltd remained in focus on 18 May 2026 amid expectations that the exchange operator could soon enter the benchmark Nifty 50 index.

At 3:05 PM IST, BSE shares were trading at ₹4,119.10, up 2.96% for the day. The stock has touched an intraday high of ₹4,124.90 during the session and remains close to its 52-week high of ₹4,132.70 on the National Stock Exchange (NSE).

The stock has rallied sharply this year. As of 18 May 2026, BSE shares were up 55.29% on a year-to-date basis.

According to analysts, BSE is expected to be included in the Nifty 50 during the September 2026 semi-annual index review. Wipro is emerging as the weakest candidate within the Nifty 50 pack ahead of the September reshuffle.

If the index change goes through, passive funds tracking the Nifty 50 could bring inflows of nearly $639 million into BSE shares. At the same time, Wipro may see estimated outflows of around $206 million because of index-linked selling.

Why Is BSE Likely To Enter The Nifty 50?

Nifty 50 index changes are based on average float market capitalisation (AFMC).

Under the methodology, a non-member stock becomes eligible for inclusion if its AFMC exceeds at least 1.5 times that of the smallest existing Nifty 50 constituent.

BSE’s AFMC is now more than 1.5 times that of Wipro, making the IT company the most vulnerable candidate for exclusion from the benchmark index. If only one stock replacement happens during the September review, BSE is expected to replace Wipro.

Several factors have supported the rally in BSE shares:

• Strong rise in retail investor participation

• Higher trading volumes across segments

• Recovery in the derivatives business

• Growth in weekly Sensex options trading

• Record earnings momentum

BSE has also emerged as one of the strongest-performing financial stocks over the last year.

Why Is Wipro Facing Pressure?

BSE’s sharp rally has come at a time when IT stocks have largely remained under pressure. Wipro, in particular, has seen weak investor sentiment over the past year, with the stock falling more than 25% during the period.

The pressure increased after the company’s March-quarter earnings missed expectations. Management also issued a muted outlook for the next quarter, guiding for revenue growth in the range of -2% to 0%.

Analysts also remain cautious on the company’s near-term business outlook. Spending in the BFSI segment has stayed soft, while slower decision-making by global clients continues to weigh on technology demand.

There are also concerns that rapid AI adoption could disrupt parts of the traditional IT services model over time. Amid these pressures, Wipro shares have continued to trade near their 52-week low levels.

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What Other Index Changes Are Expected?

The September review is also expected to trigger broader reshuffling across the Nifty 100 and Nifty Next 50 indices. The Nifty 100 may see a maximum of five additions and five deletions in a single review cycle.

Expected additions include BSE, Hitachi Energy India, Polycab India, Vodafone Idea and Bharat Heavy Electricals. Likely exits include Macrotech Developers, Shree Cement, Indian Hotels, REC and Zydus Lifesciences.

The Nifty Next 50 index is also expected to see five changes because of the reshuffle, with estimated one-way passive flows of around $310 million. A separate weight-capping rebalance for the Nifty Next 50 is scheduled for June 2026, although no additions or deletions are expected at that stage.

Analysts noted that sharp stock price movements before the reference period closes could still alter the final composition of the indices.

Source:

Moneycontrol