IndiGo, Max Healthcare Join Nifty 50 in Major Index Shuffle

Mumbai:  Shares of InterGlobe Aviation Ltd., which operates India’s largest airline IndiGo, and hospital chain Max Healthcare were in focus on Monday after the National Stock Exchange (NSE) announced the two companies would be added to the prestigious Nifty 50 index. The update is part of the NSE’s routine reshuffle of its benchmark indices, with changes taking effect from September 30, 2025.

Despite the spotlight, the market reaction was mixed. By 9:35 a.m., Max Healthcare shares slipped 1.7%, while IndiGo remained mostly flat. Stocks being removed from the index, IndusInd Bank and Hero MotoCorp saw modest early gains.

How Market Capitalisation Drives the Index Changes

The Nifty 50 reshuffle happens twice a year, based on how companies perform in terms of free-float market capitalisation, essentially the total value of publicly traded shares. Stocks with higher free-float values are more likely to be included.

This time, IndiGo, with a free-float value of around ₹1.14 lakh crore, and Max Healthcare, at ₹84,555 crore, outperformed IndusInd Bank and Hero MotoCorp, whose market caps fell below the required threshold. As a result, the latter two will move to the Nifty Midcap Select index, following their exit from the Nifty 100, which serves as the feeder index for the Nifty 50.

Impact on Investors and Fund Flows

Being added to the Nifty 50 isn’t just a badge of honour, it often leads to major fund flows. Many exchange-traded funds (ETFs) and mutual funds that track the index must adjust their holdings to reflect the new constituents.

According to Nuvama Alternative & Quantitative Research, IndiGo could attract up to $537 million in passive inflows, while Max Healthcare may see around $412 million. On the flip side, IndusInd Bank and Hero MotoCorp may experience outflows as they exit the index.

How the Stocks Have Been Performing

It’s been a strong year for IndiGo, with its stock up more than 32% in 2025. However, Kotak Institutional Equities recently revised its rating from ‘Buy’ to ‘Add’, citing potential operational headwinds after the sharp rally. The brokerage has set a target price of ₹6,850 for the stock.

Max Healthcare’s inclusion hasn’t sparked a rally just yet, with the stock trading lower despite the positive news. Analysts suggest that profit booking or broader market caution could be behind the muted reaction.

IndusInd Bank, on the other hand, has had a challenging year. The stock is down nearly 18% through July, weighed down by a $230 million loss due to internal trading errors—a controversy that led to the resignation of both the CEO and deputy CEO earlier this year.

Hero MotoCorp has fared slightly better, with a modest gain of 1.82% over the same period.

Additional Changes Across NSE Indices

The reshuffle isn’t limited to the Nifty 50. The NSE has also announced changes to the Nifty Next 50 and several other indices:

• Hindustan Zinc, Mazagon Dock, Siemens Energy, and Solar Industries are being added to the Nifty Next 50.
   
• Meanwhile, InterGlobe Aviation (IndiGo), Swiggy, Dabur, and ICICI Prudential Life Insurance will exit the Nifty Next 50, mostly due to changes in the Nifty 100.
   

There are no changes to sector-specific indices such as Nifty Bank, Nifty IT, FMCG, Oil & Gas, and others.