Description
BSE announces addition of HDB Financial Services Ltd., LG Electronics India Ltd., and Tata Capital Ltd. to various indices effective December 02, 2025.
Summary
BSE Index Services Private Ltd announces the reconstitution of multiple BSE indices effective December 02, 2025. Three companies will be added to various indices: HDB Financial Services Ltd. (Exchange Ticker: 544429), LG Electronics India Ltd. (Exchange Ticker: 544576), and Tata Capital Ltd. (Exchange Ticker: 544574). No stocks are being dropped from any of the indices in this reconstitution.
Key Points
- HDB Financial Services Ltd. will be added to BSE Allcap, BSE MidCap, BSE LargeMidCap, BSE MidSmallCap, and BSE Financial Services indices
- LG Electronics India Ltd. will be added to BSE Allcap, BSE LargeCap, BSE LargeMidCap, and BSE Consumer Discretionary indices
- Tata Capital Ltd. will be added to BSE Allcap, BSE LargeCap, BSE LargeMidCap, and BSE Financial Services indices
- Changes are based on methodology notice no. 20251029-21
- No stocks are being removed from any indices
Regulatory Changes
This reconstitution follows the methodology changes outlined in BSE notice no. 20251029-21 dated October 29, 2025.
Compliance Requirements
- Index fund managers and passive investment vehicles tracking these indices must rebalance their portfolios to reflect the new constituents
- Market participants should note the effective date for any trading or portfolio adjustments
- Queries should be directed to bseindex@bseindia.com
Important Dates
- Notice Date: November 25, 2025
- Effective Date: December 02, 2025 (at market open on Tuesday)
Impact Assessment
Market Impact: The addition of three large companies to multiple indices is expected to generate buying interest from index-tracking funds and passive investment vehicles. Since no stocks are being dropped, there will be no selling pressure from index rebalancing.
Operational Impact: Fund managers tracking these indices will need to purchase shares of the three companies in proportion to their index weights. The inclusion of HDB Financial Services in mid-cap focused indices, and LG Electronics India and Tata Capital in large-cap focused indices indicates these companies have achieved sufficient market capitalization and liquidity thresholds.
Sector Impact: The additions strengthen representation of the financial services sector (HDB Financial Services and Tata Capital) and consumer discretionary sector (LG Electronics India) in BSE indices.
Impact Justification
Index reconstitution affects passive funds tracking these indices and may cause trading activity in the included stocks, but no stocks are being dropped from the indices.