Description
BSE announces changes to multiple indices including Consumer Discretionary, Energy, Industrials, Diversified Financials Revenue Growth Index, and Select IPO Index effective December 22, 2025.
Summary
BSE has announced the reconstitution of five indices effective December 22, 2025. The changes include additions and deletions across BSE Consumer Discretionary, BSE Energy, BSE Industrials, BSE Diversified Financials Revenue Growth Index, and BSE Select IPO Index. A total of 17 stocks will be added while 26 stocks will be dropped from these indices.
Key Points
- Effective date for all index changes: December 22, 2025
- BSE Consumer Discretionary: 1 addition (SKF India Ltd.), 3 deletions
- BSE Energy: 0 additions, 1 deletion (Dolphin Offshore Enterprises)
- BSE Industrials: 0 additions, 2 deletions (including SKF India Ltd. moving to Consumer Discretionary)
- BSE Diversified Financials Revenue Growth Index: 10 additions, 9 deletions
- BSE Select IPO Index: 6 additions, 6 deletions
- Notable additions include Siemens Energy India, HDB Financial Services, National Securities Depository, and JSW Cement
Regulatory Changes
No regulatory changes. This is a routine index rebalancing exercise conducted by BSE to maintain index relevance and composition based on predefined methodology.
Compliance Requirements
- Index fund managers and passive investment vehicles tracking these indices must rebalance their portfolios to align with the new index composition
- Portfolio adjustments must be completed by the effective date of December 22, 2025
- Market participants should account for potential increased trading volumes in affected securities during the rebalancing period
Important Dates
- December 22, 2025: Effective date for all index reconstitution changes across all five BSE indices
Impact Assessment
Market Impact: Index reconstitution typically leads to increased trading activity in affected stocks as passive funds and index-tracking portfolios rebalance. Stocks being added may experience buying pressure, while deleted stocks may face selling pressure in the days leading up to and on the effective date.
Sectoral Impact: The BSE Diversified Financials Revenue Growth Index sees the most significant changes with 10 additions including Choice International, Poonawalla Fincorp, TVS Holdings, Muthoot Finance, Mahindra & Mahindra Financial Services, Federal Bank, RBL Bank, Shriram Finance, Max Financial Services, and Niva Bupa Health Insurance.
IPO Index Changes: The BSE Select IPO Index rotation includes newer listings like Siemens Energy India, HDB Financial Services, Anthem Biosciences, National Securities Depository, JSW Cement, Aditya Infotech, and Vikram Solar replacing older IPOs.
Liquidity Considerations: SKF India Ltd. is being reclassified from BSE Industrials to BSE Consumer Discretionary, reflecting a sectoral reclassification rather than complete removal from BSE coverage.
Impact Justification
Index reconstitution affects passive fund rebalancing and stock liquidity but is a routine periodic event. Impacts multiple indices with 7 additions and 26 deletions across various sectors.