Description

Multiple index constituent changes across major NSE indices effective September 30, 2025, including additions and exclusions in Nifty 50, Nifty Next 50, Nifty Midcap Select, and Nifty Financial Services.

Summary

NSE has announced significant changes to the constituents of four major indices - Nifty 50, Nifty Next 50, Nifty Midcap Select, and Nifty Financial Services, effective September 30, 2025 (close of September 29, 2025). The changes include multiple additions and exclusions across these indices, with Hero MotoCorp and IndusInd Bank being moved from Nifty 50 to Nifty Midcap Select, while InterGlobe Aviation and Max Healthcare Institute are being added to Nifty 50.

Key Points

  • Nifty 50: Hero MotoCorp and IndusInd Bank excluded; InterGlobe Aviation and Max Healthcare Institute included
  • Nifty Next 50: Four exclusions (Dabur India, ICICI Prudential Life, InterGlobe Aviation, Swiggy) and four inclusions (Hindustan Zinc, Mazagoan Dock, Siemens Energy India, Solar Industries)
  • Nifty Midcap Select: Six exclusions including Colgate Palmolive, Max Healthcare, MphasiS; six inclusions including Hero MotoCorp, IndusInd Bank
  • Nifty Financial Services: HDFC AMC excluded, BSE included
  • All changes based on NSE Indices Limited press release dated August 22, 2025

Regulatory Changes

Index composition changes are implemented based on periodic reviews by NSE Indices Limited following established methodology criteria including market capitalization, liquidity, and sector representation requirements.

Compliance Requirements

  • Members must note the index constituent changes for trading and settlement purposes
  • Portfolio adjustments required for index-linked products and ETFs
  • F&O contracts may require adjustments based on the underlying index changes
  • Market participants should update their systems and processes accordingly

Important Dates

  • Announcement Date: August 25, 2025
  • Effective Date: September 30, 2025 (close of September 29, 2025)
  • Press Release Date: August 22, 2025 (NSE Indices Limited)

Impact Assessment

High impact on market operations as these changes affect flagship indices including Nifty 50. Index funds, ETFs, and derivative contracts will require rebalancing. The movement of stocks between indices will affect their weightage in portfolios and may influence trading volumes and institutional investment flows. F&O market participants need to account for potential contract adjustments.

Impact Justification

Major changes to flagship indices including Nifty 50 affect market structure, ETF compositions, and F&O contracts