On September 29, 2026, shares of the Bombay Stock Exchange (BSE) surged by 3%, while Wipro's stock declined by nearly 2%. This movement came as investors focused on the upcoming semi-annual reshuffle of the NIFTY50 index, scheduled for September 30. The reshuffle adjusts the index by including high-performing companies and excluding those underperforming, affecting market dynamics and investment flows.
- BSE shares increased by 3% to an intraday high of ₹3,191.
- Wipro shares dropped 1.8% to an intraday low of ₹158.59.
- BSE's free-floating market capitalization reached ₹1.28 lakh crore.
- Wipro's free-floating market capitalization stood at ₹43,000 crore.
- BSE was added to the NIFTY50 index due to its strong market capitalization.
- Wipro faces sectoral challenges and has seen a 40% year-to-date stock decline.
- Index reshuffle expected to cause significant fund inflows into BSE and outflows from Wipro.
What is the NIFTY50 index reshuffle?
The NIFTY50 index reshuffle is a semi-annual event conducted on the last working day of September. It involves rebalancing the index by adding companies with strong market performance and removing those that underperform. This process ensures the index reflects the top 50 companies listed on the National Stock Exchange (NSE) based on market capitalization.
Why did BSE shares rise while Wipro shares fell?
BSE shares rose because the company qualified for inclusion in the NIFTY50 index after its average free-float market capitalization exceeded ₹1.40 lakh crore over six months. This inclusion attracts fund inflows from institutional investors who track the index. Conversely, Wipro's shares declined due to its underperformance in the IT sector and exclusion from the index, leading to expected fund outflows.
How does the reshuffle affect investors and stock prices?
The reshuffle triggers significant buying and selling by institutional investors such as passive funds, hedge funds, and ETFs that replicate the NIFTY50 index. Stocks added to the index, like BSE, typically see increased demand and price gains. Stocks removed, like Wipro, often experience selling pressure and price declines. This leads to short-term volatility in the affected stocks.
What is the recent performance of BSE and Wipro stocks?
In 2026, BSE shares have gained over 21% year-to-date, supported by increased market participation and trading volumes. In contrast, Wipro's stock has fallen more than 40% year-to-date, reflecting challenges in the Indian IT sector amid sectoral headwinds and the rise of artificial intelligence. Wipro's shares also declined nearly 12% in the past month and about 4% in the last five days.
What are the expected fund flow impacts from the reshuffle?
Media reports estimate that BSE will receive fund inflows of approximately $595 million due to its inclusion in the NIFTY50 index. Wipro is expected to see outflows around $152 million as funds adjust their portfolios to match the updated index composition. These flows contribute to the volatility and price movements around the reshuffle date.
Are other indices affected by similar reshuffles?
Yes, alongside the NIFTY50, other major NSE indices also undergo periodic additions and exclusions. These changes similarly cause temporary price movements and volatility in the stocks involved, as investors realign their holdings to reflect the updated index constituents.
