Description
NSE announces index rebalancing effective March 30, 2026, with additions and exclusions across three major indices: Nifty Next 50, Nifty Midcap Select, and Nifty Financial Services.
Summary
NSE has announced changes in the constituents of three indices — Nifty Next 50, Nifty Midcap Select, and Nifty Financial Services — effective March 30, 2026 (at the close of March 27, 2026), based on a press release by NSE Indices Limited dated February 23, 2026. A total of 22 stocks are affected across additions and exclusions.
Key Points
- Three indices are being rebalanced: Nifty Next 50, Nifty Midcap Select, and Nifty Financial Services
- Changes are effective March 30, 2026 (close of March 27, 2026)
- Nifty Next 50: 6 stocks excluded, 6 stocks included
- Nifty Midcap Select: 7 stocks excluded, 7 stocks included
- Nifty Financial Services: 1 stock excluded, 1 stock included
- Circular issued by the Futures & Options department (Ref: NSE/FAOP/72971, Circular 29/2026)
Regulatory Changes
Index constituent changes as directed by NSE Indices Limited:
Nifty Next 50 — Excluded:
- Bajaj Housing Finance Ltd. (BAJAJHFL)
- Havells India Ltd. (HAVELLS)
- ICICI Lombard General Insurance Company Ltd. (ICICIGI)
- Info Edge (India) Ltd. (NAUKRI)
- JSW Energy Ltd. (JSWENERGY)
- Life Insurance Corporation of India (LICI)
Nifty Next 50 — Included:
- Cummins India Ltd. (CUMMINSIND)
- HDFC Asset Management Company Ltd. (HDFCAMC)
- Muthoot Finance Ltd. (MUTHOOTFIN)
- Tata Capital Ltd. (TATACAP)
- Tata Motors Ltd. (TMCV)
- Union Bank of India (UNIONBANK)
Nifty Midcap Select — Excluded:
- Coforge Ltd. (COFORGE)
- Cummins India Ltd. (CUMMINSIND)
- Godrej Properties Ltd. (GODREJPROP)
- HDFC Asset Management Company Ltd. (HDFCAMC)
- Mankind Pharma Ltd. (MANKIND)
- Muthoot Finance Ltd. (MUTHOOTFIN)
- Union Bank of India (UNIONBANK)
Nifty Midcap Select — Included:
- AU Small Finance Bank Ltd. (AUBANK)
- Fortis Healthcare Ltd. (FORTIS)
- Indian Bank (INDIANB)
- Info Edge (India) Ltd. (NAUKRI)
- Life Insurance Corporation of India (LICI)
- One 97 Communications Ltd. (PAYTM)
- Swiggy Ltd. (SWIGGY)
Nifty Financial Services — Excluded:
- ICICI Prudential Life Insurance Company Ltd. (ICICIPRULI)
Nifty Financial Services — Included:
- Max Financial Services Ltd. (MFSL)
Compliance Requirements
- All members and market participants tracking or benchmarking against these indices must update their portfolios accordingly before the effective date.
- Fund managers of passive funds, ETFs, and index funds linked to these indices are required to rebalance holdings to reflect the new constituents by the close of March 27, 2026.
- Derivatives positions linked to index futures/options on these indices should be reviewed in light of the constituent changes.
Important Dates
- Circular Date: February 24, 2026
- Press Release Date (NSE Indices Limited): February 23, 2026
- Effective Date: March 30, 2026 (changes take effect at the close of March 27, 2026)
Impact Assessment
This rebalancing has significant market impact across multiple fronts:
- Passive Funds & ETFs: Index funds and ETFs tracking Nifty Next 50, Nifty Midcap Select, and Nifty Financial Services must rebalance, leading to large buy/sell volumes in affected stocks near the effective date.
- Stocks being excluded (e.g., BAJAJHFL, HAVELLS, COFORGE, GODREJPROP, ICICIPRULI) may face selling pressure as passive funds reduce holdings.
- Stocks being included (e.g., TATACAP, SWIGGY, PAYTM, MFSL, AUBANK) may see buying demand from passive fund rebalancing.
- Notable cross-index moves: CUMMINSIND and MUTHOOTFIN move from Nifty Midcap Select to Nifty Next 50; HDFCAMC and UNIONBANK similarly graduate; NAUKRI and LICI move from Nifty Next 50 to Nifty Midcap Select.
- Derivatives market: Index futures and options contracts on these indices may see increased volatility and open interest adjustments around the rebalancing window.
Impact Justification
Index rebalancing across three major NSE indices affects 22 stocks, triggering mandatory portfolio rebalancing by passive funds, ETFs, and index-linked derivatives; high market impact expected around the effective date.