The National Stock Exchange (NSE) has implemented its semi-annual rebalancing of the Nifty 50 index, effective September 30, 2025. As part of this reshuffle, InterGlobe Aviation (the parent company of IndiGo Airlines) and Max Healthcare Institute have been included in the index, replacing Hero MotoCorp and IndusInd Bank.
This change is expected to result in significant passive inflows into the newly added stocks. According to Nuvama Institutional Equities, IndiGo’s inclusion is anticipated to attract passive inflows of approximately $545 million, while Max Healthcare is projected to receive around $372 million. Conversely, Hero MotoCorp and IndusInd Bank are expected to experience outflows of $309 million and $217 million, respectively.
In addition to the constituent changes, the weightage of certain existing Nifty 50 stocks has been adjusted. Notably, State Bank of India (SBI), ITC, and Bajaj Finserv have seen increases in their index weightages, which could lead to additional inflows of $99 million, $38 million, and $19 million, respectively.
These adjustments reflect the dynamic nature of the market and aim to ensure that the Nifty 50 index accurately represents the top-performing companies listed on the NSE. The rebalancing is part of the NSE’s regular review process, which considers factors such as market capitalization and liquidity to determine index composition.
The inclusion of IndiGo and Max Healthcare in the Nifty 50 index underscores the growing prominence of the aviation and healthcare sectors in India’s economy. IndiGo, as the country’s largest airline, has seen significant growth in recent years, while Max Healthcare has expanded its presence in the healthcare industry. Their addition to the benchmark index is expected to enhance the representation of these sectors in the market.
The removal of Hero MotoCorp and IndusInd Bank from the Nifty 50 index reflects shifts in market dynamics and company performances. Hero MotoCorp, a leading two-wheeler manufacturer, has faced challenges in maintaining its market position, while IndusInd Bank has experienced issues affecting investor confidence. These changes highlight the evolving nature of the market and the importance of regular index reviews to ensure accurate representation.
Investors and market participants will closely monitor the impact of these changes on the Nifty 50 index and the broader market. The adjustments are expected to influence investment strategies and fund allocations, particularly for index-tracking funds and exchange-traded funds (ETFs) that replicate the Nifty 50 index.
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