Healthcare player Max Healthcare and Indigo-parent InterGlobe Aviation may be included in the benchmark Nifty 50 index during the next review, said Nuvama Alternative & Quantitative Research. On the flip side, beleaguered lender IndusInd Bank and auto player Hero MotoCorp might be deleted from the index.
The cut-off period for stocks to be decided ends in July, and the official announcement is expected in the latter half of August, with index adjustments effective September 29, 2025.
IndiGo has already seen substantial positive price action, reflecting market expectations. On the other hand, Max Healthcare appears under-owned on this theme and could see more buying interest. "We estimate that Max Health’s inclusion would imply passive buying of over $400 million," said the brokerage.
Further, the only scenario where Max Health may miss inclusion is if Hindustan Aeronautics
(HAL) outperforms Max Health by ~12 percent immediately and sustains that outperformance through July-end — an outcome Nuvama views as low probability.
The research firm added that while much of the negative sentiment appears to be priced in regarding IndusInd Bank and Hero MotoCorp, it believes any further downside will be more pronounced around the adjustment period. "Until then, we don’t expect significant pressure purely from expected passive flows," said Nuvama.
Earlier, investors were expecting that Asia's oldest bourse BSE Ltd could join the Nifty 50. However, Nuvama's Abhilash Pagaria said, "We have received multiple queries on BSE’s eligibility, and our view remains unchanged. BSE has zero probability of being included in the Nifty 50 in the September 2025 review, based on the current methodology and thresholds."
"We’ve gone through the methodology document in detail, and our understanding suggests that BSE fails to meet several key eligibility criteria. In fact, we believe there’s almost no chance of BSE even making it to the Nifty Next 50 in September 2025 review," added the brokerage.
How are stocks chosen to join the Nifty 50?
The Nifty 50 index is reshuffled twice every year, based on six-month data ending January 31 and July 31. The changes to the index are then made in March and September. To decide the stocks that enter the Nifty 50 index, NSE looks at the average free-float market capitalisation for the six months.
Free-float market cap refers to the market value of shares readily available for trading by the public, excluding promoters' holdings and other restricted shares.
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