The National Stock Exchange (NSE) announced changes to its Nifty 50 index on Friday, effective September 30. Max Healthcare Institute and InterGlobe Aviation—the parent company of IndiGo—will be added, while IndusInd Bank and Hero MotoCorp are set to be removed as part of the semi-annual reshuffle.
The NSE reviews the Nifty 50 composition twice a year, based on average free-float market capitalization over the six months ending January 31 and July 31, with changes taking effect in March and September.
Index adjustments often trigger portfolio rebalancing by ETFs tracking the Nifty 50, potentially resulting in significant inflows or outflows for affected stocks. Brokerage firm Nuvama estimated that Max Healthcare could see passive inflows of around $400 million following its inclusion.
Between January and July, Max Healthcare shares rose 9.34% and InterGlobe Aviation gained 28.61%, while IndusInd Bank fell 17.59% and Hero MotoCorp edged up 1.82%. InterGlobe recently hit a record high after Jefferies forecasted continued market share growth in both domestic and international markets.
IndusInd Bank has faced challenges following a $230 million loss due to misreported derivatives trades in FY23, prompting the resignations of CEO Sumant Kathpalia and deputy chief Arun Khurana in April.
