Description

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

Summary

BSE Index Services Private Ltd announces reconstitution of five major indices: BSE SENSEX, BSE 100, BSE SENSEX 50, BSE SENSEX Next 50, and BSE BANKEX. Changes will be implemented in two phases - December 22, 2025 for equity indices and December 26, 2025 for the banking sector index. The reconstitution includes additions and deletions across these indices, with notable changes including Interglobe Aviation’s entry into SENSEX and Tata Motors Passenger Vehicles’ exit.

Key Points

  • Interglobe Aviation Ltd (539448) added to BSE SENSEX, replacing Tata Motors Passenger Vehicles Ltd (500570)
  • IDFC First Bank Ltd (539437) added to BSE 100, replacing Adani Green Energy Ltd (541450)
  • Max Healthcare Institute Ltd (543220) added to BSE SENSEX 50, replacing Indusind Bank Ltd (532187)
  • Indusind Bank and IDFC First Bank added to BSE SENSEX Next 50, while Max Healthcare and Adani Green Energy exit
  • Four banks added to BSE BANKEX: Canara Bank (532483), AU Small Finance Bank (540611), Punjab National Bank (532461), and Union Bank of India (532477)
  • Changes effective at market open on specified dates

Regulatory Changes

No regulatory changes. This is a periodic index reconstitution based on BSE’s index methodology and selection criteria. The reconstitution reflects changes in market capitalization, liquidity, and other index eligibility parameters.

Compliance Requirements

  • Index fund managers and ETF providers must rebalance portfolios to align with new index composition
  • Market participants tracking these indices should adjust their passive investment strategies
  • Derivative contracts linked to these indices may require adjustments
  • Queries should be directed to bseindex@bseindia.com

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 (at market open)
  • December 26, 2025: Effective date for BSE BANKEX reconstitution (at market open)

Impact Assessment

Market Impact: High - The reconstitution will trigger significant passive fund flows as index-tracking funds rebalance their portfolios. Stocks being added will see buying pressure, while deleted stocks may face selling pressure.

Specific Stock Impact:

  • Positive: Interglobe Aviation (SENSEX inclusion), IDFC First Bank (BSE 100 inclusion), Max Healthcare (SENSEX 50 inclusion), Canara Bank, AU Small Finance Bank, Punjab National Bank, and Union Bank (BANKEX inclusions)
  • Negative: Tata Motors Passenger Vehicles (SENSEX exit), Adani Green Energy (BSE 100 and SENSEX Next 50 exits), Indusind Bank (SENSEX 50 exit to SENSEX Next 50)

Sectoral Impact: Banking sector representation increases in BANKEX with addition of four public and private sector banks, reflecting the sector’s evolving market position.

Portfolio Implications: Passive investors with exposure to these indices should expect automatic rebalancing. Active investors may anticipate trading opportunities around the effective dates due to index-related fund flows.

Impact Justification

Major index reconstitution affects passive fund flows and portfolio rebalancing across flagship BSE indices including SENSEX, impacting multiple large-cap stocks