Description

BSE announces changes to multiple indices including BSE SENSEX, BSE 100, BSE SENSEX 50, BSE SENSEX Next 50, and BSE BANKEX effective December 22 and 26, 2025.

Summary

BSE Index Services Private Ltd announces reconstitution of BSE SENSEX, BSE 100, BSE SENSEX 50, BSE SENSEX Next 50, and BSE BANKEX indices. Changes will be effective at the open of Monday, December 22, 2025 and Friday, December 26, 2025. Multiple stocks will be added and removed from these indices affecting index funds and ETFs tracking these benchmarks.

Key Points

  • BSE SENSEX: Interglobe Aviation Ltd. (539448) added, Tata Motors Passenger Vehicles Ltd (500570) removed
  • BSE 100: IDFC First Bank Ltd. (539437) added, Adani Green Energy Ltd. (541450) removed
  • BSE SENSEX 50: Max Healthcare Institute Ltd. (543220) added, Indusind Bank Ltd (532187) removed
  • BSE SENSEX Next 50: Indusind Bank Ltd (532187) and IDFC First Bank Ltd. (539437) added, Max Healthcare Institute Ltd. (543220) and Adani Green Energy Ltd. (541450) removed
  • BSE BANKEX: Canara Bank (532483), AU Small Finance Bank Ltd. (540611), Punjab National Bank (532461), and Union Bank of India (532477) added with no specified removals
  • Changes span two effective dates: December 22 and December 26, 2025

Regulatory Changes

No regulatory changes. This is a periodic index reconstitution as part of BSE’s standard index maintenance procedures.

Compliance Requirements

  • Index funds and ETFs tracking these indices must rebalance portfolios to reflect new composition
  • Market participants should adjust derivative positions based on revised index constituents
  • Fund managers must execute trades at opening prices on effective dates to minimize tracking error

Important Dates

  • November 21, 2025: Announcement date
  • December 22, 2025: Effective date for BSE SENSEX, BSE 100, BSE SENSEX 50, and BSE SENSEX Next 50 reconstitution
  • December 26, 2025: Effective date for BSE BANKEX reconstitution

Impact Assessment

Market Impact: Index reconstitution typically generates significant trading volume as passive funds rebalance. Stocks being added may experience buying pressure while removed stocks may face selling pressure. The addition of Interglobe Aviation to BSE SENSEX and removal of Tata Motors Passenger Vehicles is particularly notable given SENSEX’s flagship status.

Sector Impact: Banking sector sees expansion in BSE BANKEX with addition of four banks, indicating broader representation of the banking sector. Healthcare sector gains prominence with Max Healthcare’s inclusion in SENSEX 50.

Investor Impact: Passive investors tracking these indices will automatically gain exposure to new constituents and exit removed stocks. Active managers may anticipate these flows for trading opportunities around effective dates.

Impact Justification

Index reconstitution affects passive fund rebalancing and market positioning for multiple major indices including the flagship SENSEX