BSE, IndiGo likely to replace IndusInd Bank, Hero MotoCorp making way in Nifty50 index

Synopsis

BSE Ltd and InterGlobe Aviation may soon be part of the Nifty 50 index. A reshuffle is expected in August. The revised list will likely be effective from September. IndusInd Bank and Hero MotoCorp might be removed. BSE is expected to meet all requirements. IndiGo has shown consistent market presence. BSE shares have given great returns.

Shares of BSE Ltd and InterGlobe Aviation, the parent company of IndiGo, may be poised to join the Nifty 50 index in the upcoming reshuffle, according to a report by CNBC-TV18, citing sources familiar with the matter. IndusInd Bank and Hero MotoCorp are among the names that could potentially be removed from the benchmark index in the next review, the report added.

The changes are part of the semi-annual review of the Nifty 50 index, which is expected to take place in August, with the revised composition likely to take effect from September.

BSE is likely to meet all eligibility norms, including listing and trading requirements, despite being listed only on the National Stock Exchange (NSE). Inclusion in the Nifty 50 is typically determined by factors such as average free-float market capitalisation and liquidity thresholds.

The development, if confirmed, would mark a significant milestone for Asia's oldest stock exchange, which has seen strong performance in recent months. InterGlobe Aviation, India’s largest airline operator by market share, has also demonstrated consistent market presence, potentially strengthening its case for inclusion.

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On the other hand, IndusInd Bank, which has faced challenges in maintaining growth momentum, and Hero MotoCorp, grappling with demand pressures in the two-wheeler segment, are seen as likely exclusion candidates based on the existing index criteria.

In the last year, shares of BSE have given a stellar 224.49% return to its investors, while those of IndiGo have surged by 26.44%.In contrast, IndusInd Bank shares have dropped 44.76% during the same period, while Hero MotoCorp has declined 21.82% over the past year.

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