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 multiple indices effective December 22, 2025. The changes include additions and deletions across BSE India 150, BSE 150 Midcap Index, BSE 100 Largecap TMC, BSE 250 LargeMidcap Index, and BSE AllCap Index. This periodic rebalancing will result in significant changes to index composition affecting passive funds and index-tracking portfolios.

Key Points

  • Effective date for all index changes: December 22, 2025
  • BSE India 150: 4 additions, 4 deletions
  • BSE 150 Midcap Index: 10 additions, 10 deletions
  • BSE 100 Largecap TMC: 3 additions, 3 deletions
  • BSE 250 LargeMidcap Index: 8 additions, 8 deletions
  • BSE AllCap: 3 deletions (Shri Jagdamba Polymers Ltd., Dolphin Offshore Enterprises India Ltd., Hampton Sky Re)
  • Major additions include One 97 Communications (Paytm), Solar Industries, GE Vernova TD India, Laurus Labs
  • Major deletions include Mahindra & Mahindra Financial Services, ASTRAL, Adani Total Gas, LIC Housing Finance

Index Changes Details

BSE India 150 - Additions:

  • One 97 Communications Ltd (543396)
  • Solar Industries India Ltd (532725)
  • GE Vernova TD India Ltd (522275)
  • Laurus Labs Ltd (540222)

BSE India 150 - Deletions:

  • Mahindra & Mahindra Financial Services Ltd (532720)
  • ASTRAL Ltd (532830)
  • Adani Total Gas Ltd (542066)
  • LIC Housing Finance Ltd (500253)

BSE 150 Midcap - Notable Additions:

  • ICICI Prudential Life Insurance Company Ltd (540133)
  • Dabur India Ltd (500096)
  • Indian Overseas Bank (532388)
  • Hexaware Technologies Ltd (544362)
  • ITC Hotels Ltd (544325)
  • Multi Commodity Exchange of India Ltd (534091)

BSE 150 Midcap - Notable Deletions:

  • Bandhan Bank Ltd (541153)
  • Syngene International Ltd (539268)
  • Solar Industries India Ltd (532725) - moving to India 150
  • Mazagon Dock Shipbuilders Ltd (543237)
  • Metro Brands Ltd (543426)

Compliance Requirements

  • Index fund managers must rebalance portfolios to match new index composition by December 22, 2025
  • Passive investment products tracking these indices need to adjust holdings
  • Market participants should account for potential liquidity impact during rebalancing period
  • Portfolio managers using these indices as benchmarks should review performance attribution

Important Dates

  • December 5, 2025: Announcement date
  • December 22, 2025: Effective date for all index changes

Impact Assessment

Market Impact:

  • High trading volumes expected in affected stocks around the effective date due to index fund rebalancing
  • Stocks being added may see buying pressure from passive funds
  • Stocks being deleted may face selling pressure
  • Estimated passive fund flows could be significant given the number of changes across multiple indices

Operational Impact:

  • Fund managers need to execute rebalancing trades efficiently to minimize tracking error
  • Increased volatility expected in constituent stocks during transition period
  • Derivative positions linked to these indices may require adjustment

Strategic Considerations:

  • Investors can anticipate index inclusion/exclusion effects for tactical positioning
  • Long-term investors should evaluate fundamental merit independent of index membership
  • The reconstitution reflects changes in market capitalization and liquidity of constituent stocks

Impact Justification

Index reconstitution affects passive fund flows, portfolio rebalancing across multiple BSE indices with 30+ stock additions/deletions, significant impact on institutional trading