NSE Indices’ September 2026 reconstitution is one of the broadest market-cap reshuffles of the year, changing the composition of the Nifty 50, Nifty 100, Nifty Next 50, Nifty Midcap 150 and Nifty Smallcap 250.
The replacements become effective on September 30, 2026, based on the close of September 29. Passive funds tracking the affected indices therefore need to align their portfolios around the implementation close.
The headline is BSE’s entry into the Nifty 50 in place of Wipro. Beneath that single replacement is a much larger migration across the large-, mid- and small-cap tiers.
How the market-cap ladder works
The Nifty 100 combines the Nifty 50 and Nifty Next 50. The Nifty Midcap 150 broadly represents the next 150 companies below the large-cap tier, while the Nifty Smallcap 250 represents the following 250 companies in the eligible universe.
Movement between tiers is driven primarily by free-float market capitalisation and index eligibility rules. It should not automatically be read as a verdict on a company’s business quality.
Nifty 50: BSE replaces Wipro
BSE will enter the Nifty 50, while Wipro will leave the benchmark and move into the Nifty Next 50.
NSE Indices reported that BSE’s six-month average free-float market capitalisation was approximately ₹1,40,879 crore, more than 1.5 times Wipro’s ₹55,930 crore. That threshold allowed BSE to satisfy the benchmark’s replacement rule.
TVS Motor and Divi’s Laboratories were the next eligible candidates by free-float market value, but they did not clear the required threshold relative to the remaining lowest-ranked Nifty 50 constituents.
BSE’s inclusion reflects the exchange operator’s sharp re-rating as its equity-derivatives franchise, cash-market position and earnings expanded. Wipro’s exclusion reflects relative free-float ranking and eligibility mathematics rather than removal from the large-cap universe.
Nifty 100: five inclusions and five exclusions
The five additions are BSE, Hitachi Energy India, Polycab India, Vedanta Aluminium Metal and Vodafone Idea.
The five exclusions are Indian Hotels Company, Lodha Developers, REC, Shree Cement and United Spirits.
BSE enters through its promotion to the Nifty 50. The other four additions enter the Nifty Next 50 alongside Wipro, which shifts down from the benchmark.
The resulting Nifty Next 50 additions are Hitachi Energy India, Polycab India, Vedanta Aluminium Metal, Vodafone Idea and Wipro. Indian Hotels, Lodha Developers, REC, Shree Cement and United Spirits leave the Next 50 because they are no longer part of the reconstituted Nifty 100.
What the Nifty 100 changes reveal
The new entrants represent several distinct market narratives. Hitachi Energy reflects grid modernisation and high-voltage power-equipment demand. Polycab represents formalisation and infrastructure spending in wires and cables. Vodafone Idea reflects a recovery in market capitalisation following funding and balance-sheet efforts.
Vedanta Aluminium Metal is one of the newly listed entities created through the Vedanta restructuring. Its rapid movement into the large-cap tier shows how corporate reorganisations can reshape an index universe even without a conventional new-business IPO.
The five excluded companies do not disappear from broad-market indices. They move into the Nifty Midcap 150, where their relative weight and passive ownership profile will change.
Nifty Midcap 150: 13 additions and 13 exclusions
The 13 additions are Aster DM Quality Care, Embassy Office Parks REIT, Fertilisers and Chemicals Travancore, Hindustan Copper, Indian Hotels, Indian Overseas Bank, Lodha Developers, Meesho, Narayana Hrudayalaya, Piramal Finance, REC, Shree Cement and United Spirits.
The 13 exclusions are 3M India, ACC, Apollo Tyres, AWL Agri Business, BSE, Hitachi Energy India, Honeywell Automation India, KPIT Technologies, Polycab India, SJVN, Tata Elxsi, New India Assurance and Vodafone Idea.
The exclusions split into two groups. BSE, Hitachi Energy, Polycab and Vodafone Idea move upward into the Nifty 100. The remaining nine move into the Nifty Smallcap 250.
The additions also come from two directions. Indian Hotels, Lodha, REC, Shree Cement and United Spirits arrive from the Nifty 100, while the other eight move up from the small-cap tier.
The Midcap changes broaden exposure to healthcare, public-sector banking, metals, fertilisers, digital commerce and institutional real estate. Embassy Office Parks REIT’s promotion is especially notable because it places a listed yield vehicle inside a mainstream equity market-cap benchmark.
Nifty Smallcap 250: the highest churn
The Smallcap 250 will add 33 companies and remove 33, the largest turnover among the major market-cap tiers.
The additions include ACC, Apollo Tyres, AWL Agri Business, Honeywell Automation India, KPIT Technologies, SJVN, Tata Elxsi and New India Assurance—companies moving down from the Midcap 150.
They are joined by Aether Industries, Avanti Feeds, Azad Engineering, Bagmane Prime Office REIT, Bharat Coking Coal, Black Box, Brookfield India REIT, Central Mine Planning & Design Institute, Clean Max Enviro Energy Solutions, Cupid, Fractal Analytics, INOX India, Kirloskar Brothers, KSB, MTAR Technologies, Privi Speciality Chemicals, Rubicon Research, Sansera Engineering, SPR Auto Technologies, Sterlite Technologies, TD Power Systems, Thangamayil Jewellery, Vedanta Iron and Steel, Vedanta Oil and Gas and Vedanta Power.
The 33 exclusions include the eight companies promoted to the Midcap 150—Aster DM Quality Care, Embassy Office Parks REIT, FACT, Hindustan Copper, Indian Overseas Bank, Meesho, Narayana Hrudayalaya and Piramal Finance.
Other Smallcap exclusions include 3M India, Aditya Birla Fashion and Retail, Aditya Birla Lifestyle Brands, Bayer CropScience, Bikaji Foods, Blue Dart Express, Blue Jet Healthcare, Bombay Burmah Trading Corporation, C.E. Info Systems, Chalet Hotels, DCM Shriram, Eris Lifesciences, Go Digit General Insurance, Indegene, JSW Dulux, Jubilant Pharmova, Latent View Analytics, Leela Palaces Hotels & Resorts, Newgen Software, Niva Bupa Health Insurance, Pfizer, Sapphire Foods, Saregama, SBFC Finance, Sonata Software, Supreme Petrochem and Travel Food Services.
The exclusions are not necessarily demotions into irrelevance. Many remain constituents of the Nifty 500 or other indices; the change reflects relative rank within a fast-moving eligibility universe.
The REIT milestone
The reconstitution increases the visibility of listed commercial real estate. Embassy Office Parks REIT enters the Midcap 150, while Bagmane Prime Office REIT and Brookfield India REIT enter the Smallcap 250.
This matters because REITs combine equity-market liquidity with income-oriented real-estate exposure. Their inclusion requires passive equity funds tracking these indices to own a security type with a different distribution and valuation profile from an ordinary operating company.
New listings and fast-track index migration
Meesho’s entry into the Midcap 150 and the addition of recently listed or reorganised names such as Rubicon Research, Azad Engineering and the Vedanta entities show how quickly liquid new listings can enter broad-market benchmarks.
Index entry is not automatic after an IPO. A company must satisfy free-float, liquidity, listing-history and other eligibility rules. Strong post-listing market capitalisation can nevertheless compress the journey from IPO to passive-fund ownership.
The passive-flow effect
Index funds and ETFs do not buy a company because they approve of its valuation. They buy because their mandate requires close tracking of the benchmark.
Brokerage estimates differ, but Nuvama’s widely cited calculation indicated roughly $691 million of passive buying for BSE and approximately $240 million of selling pressure for Wipro around the rebalance. Wipro’s entry into the Nifty Next 50 should offset part of the gross Nifty 50 outflow.
Actual flows can differ because of assets under management, tracking choices, price movements, derivatives, transition timing and active managers positioning before implementation.
Why the implementation close can be volatile
Passive funds typically trade near the closing auction to minimise tracking error against the official index change. That can produce unusually high volume and temporary price pressure in both additions and deletions.
Arbitrage desks often anticipate these trades weeks earlier. By implementation day, part of the expected flow may already be embedded in the price. Buying an inclusion solely because passive funds must buy can therefore become a crowded trade.
What investors should—and should not—infer
Inclusion can improve liquidity, institutional ownership and visibility. It can also expand demand from benchmarked portfolios.
It does not prove that a stock is undervalued, financially strong or suitable for every investor. Exclusion likewise does not demonstrate deteriorating fundamentals.
The most useful interpretation is structural: the reshuffle shows where free-float market value and trading eligibility have moved relative to the rest of the market. Fundamental investors must still evaluate earnings, cash flow, leverage, governance and valuation.
The bottom line
The September 2026 reshuffle is more than BSE replacing Wipro. It captures a broader rotation toward capital-market infrastructure, grid equipment, cables, telecom recovery, healthcare, public-sector enterprises, precision engineering and listed real estate.
The mechanical flows will be concentrated around the September 29 close, but the investment implications extend further. The companies that remain attractive after passive demand is absorbed will be those capable of converting their higher visibility into durable earnings.
Data references: NSE Indices’ August 10, 2026 press release on replacements effective September 30; NSE Indices reconstitution calendar and methodology; published passive-flow estimates from Nuvama and other brokerages.