Description

BSE announces changes to multiple indices including BSE India 150, BSE 150 Midcap, BSE 100 LargeCap TMC, BSE 250 LargeMidCap, and BSE AllCap effective December 22, 2025.

Summary

BSE has announced the reconstitution of its FMCI Indices effective December 22, 2025. The changes involve additions and deletions across five major indices: BSE India 150, BSE 150 Midcap Index, BSE 100 LargeCap TMC, BSE 250 LargeMidCap Index, and BSE AllCap. Notable additions include One 97 Communications Ltd (Paytm), Solar Industries India Ltd, GE Vernova TD India Ltd, and Laurus Labs Ltd to BSE India 150, while companies like Mahindra & Mahindra Financial Services Ltd, ASTRAL Ltd, and Adani Total Gas Ltd will be dropped.

Key Points

  • Effective date for all index changes: December 22, 2025
  • BSE India 150: 4 additions and 4 deletions
  • BSE 150 Midcap Index: 10 additions and 10 deletions
  • BSE 100 LargeCap TMC: 3 additions and 3 deletions
  • BSE 250 LargeMidCap Index: 8 additions and 8 deletions
  • BSE AllCap: 3 deletions of small-cap stocks
  • Index funds and ETFs tracking these indices will need to rebalance portfolios

Regulatory Changes

No regulatory changes. This is a periodic index reconstitution based on BSE’s index methodology and review criteria.

Compliance Requirements

  • Index fund managers and ETF providers tracking these indices must rebalance their portfolios to reflect the new composition
  • Rebalancing should be completed on or around the effective date of December 22, 2025
  • Market participants should be aware of potential volatility in affected stocks during the rebalancing period

Important Dates

  • December 22, 2025: Effective date for all index reconstitution changes

Impact Assessment

Market Impact: Medium to high trading volumes expected in affected stocks as passive funds rebalance portfolios. Stocks being added typically see buying pressure, while deleted stocks may face selling pressure.

Sectoral Distribution: Changes reflect shifts in market capitalization and liquidity across various sectors including pharmaceuticals (Laurus Labs), defense (Mazagon Dock Shipbuilders moving to LargeCap), energy (GE Vernova TD India, Siemens Energy India), and financial services.

Notable Movements:

  • One 97 Communications (Paytm) addition to BSE India 150 signals improved market standing
  • Solar Industries and Mazagon Dock Shipbuilders moving up to larger indices
  • Financial services stocks seeing mixed movements (Indian Overseas Bank added to midcap, Bandhan Bank dropped)

Investor Considerations: Passive investors tracking these indices will automatically gain exposure to added stocks and lose exposure to dropped stocks. Active investors may anticipate index-related flows.

Impact Justification

Index reconstitution affects passive funds and ETFs tracking these indices, requiring portfolio rebalancing. Medium impact as it involves multiple major BSE indices with significant institutional holdings.