The upcoming Nifty50 index review, anticipated in August and effective from September 2025, is expected to bring significant changes. According to sources, Hero MotoCorp and IndusInd Bank may be on their way out of the benchmark index, making room for new entrants.
This reshuffle is part of the semi-annual review carried out by the National Stock Exchange (NSE), which evaluates listed companies based on key criteria such as free-float market capitalisation, liquidity, and trading volumes.
The Nifty50 review takes place twice a year using data from two periods six months ending January 31 and July 31. After the evaluation, changes are announced in February and August, and implemented in March and September, respectively. The primary metric is the average free-float market cap, which reflects the market value of shares actively traded in the market, excluding promoter and restricted holdings.
IndusInd Bank, Hero MotoCorp may be excluded
IndusInd Bank, which has been under pressure for governance and compliance issues, is now facing the possibility of being excluded from the Nifty50, alongside auto major Hero MotoCorp.
The stock has fallen nearly 11 percent over the past six months, weighed down by concerns over accounting irregularities and a troubled derivatives book. Its recent removal from the 30-share Sensex further indicates a downward trajectory in its standing among its peers.
During Monday’s trading session, both stocks continued their downward trend, with Hero MotoCorp and IndusInd Bank declining by nearly 2 percent each on the BSE. Over the past year, Hero MotoCorp has delivered negative returns of over 22 percent, while IndusInd Bank is also down approximately 43 percent.
BSE and Indigo likely to be included in Nifty50
BSE Limited and InterGlobe Aviation (IndiGo) are widely expected to be the new entrants in the Nifty50 index. BSE is only listed on the NSE and meets the eligibility criteria for index inclusion based on trading activity and market cap. On Monday, shares of BSE surged by around 4 percent to Rs. 2,795, while IndiGo climbed by nearly 1.5 percent to Rs. 5,470.5 on BSE.
Over the last year, BSE has delivered multibagger returns of over 235 percent, reflecting investor confidence in its growth trajectory. IndiGo, India’s largest airline, has also posted a strong performance, delivering around 26 percent of positive returns during the same period.
Written by Shivani Singh
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