The National Stock Exchange of India (NSE) is gearing up for its semi-annual index rebalancing scheduled for March 27, 2026. While the Nifty 50 sees minor weight adjustments, the Nifty Next 50, Midcap 150, and Smallcap 250 indices are set for significant reshuffles. These changes will come into effect from March 30, as March 31 is a stock market holiday for Shri Mahavir Jayanti.
Here’s a detailed look at what the Nifty rejig on March 27 entails and how it reshapes India’s key indices.
Market Performance: Nifty 50 Adjustments
The benchmark Nifty 50 will not witness any inclusions or exclusions in this semi-annual review. However, weight changes are in focus:
- Weight increase: Bharti Airtel, Bajaj Finance, Bajaj Finserv
- Weight reduction: HDFC Bank, Reliance Industries, ICICI Bank, Larsen & Toubro (L&T), SBI, Infosys, and other select constituents
Key points:
- Bharti Airtel is set to attract the highest passive inflows, estimated at $246 million.
- Bajaj Finance and Bajaj Finserv are expected to see inflows of about $2 million each.
- HDFC Bank, Reliance Industries, and ICICI Bank are among the top counters facing outflows, with HDFC Bank at $29 million, Reliance at $25 million, and ICICI Bank at $21 million.
This rejig also finalizes the fourth tranche of methodology changes for the Nifty Bank index.
Bank Nifty: Winners and Losers
Bank Nifty will undergo targeted weight adjustments for 14 banks:
- Stocks with increased weightage: Yes Bank, Union Bank of India, Federal Bank, Canara Bank, Kotak Mahindra Bank, Bank of Baroda, IndusInd Bank, IDFC First Bank, AU Small Finance Bank, Punjab National Bank (PNB)
- Combined passive inflows: ~$154 million
- Stocks with reduced weightage: ICICI Bank, SBI, HDFC Bank, Axis Bank
- ICICI Bank outflows: ~$111 million
- SBI & HDFC Bank outflows: ~$21 million each
- Axis Bank outflow: ~$1 million
These adjustments realign the index weights to reflect evolving market trends while keeping the composition balanced.
Nifty Next 50: Major Reshuffle
The Nifty Next 50 sees several inclusions and exclusions this cycle:
Inclusions:
- Tata Motors – inflows $171 million
- Cummins India – inflows $123 million
- HDFC Asset Management Company (HDFC AMC) – inflows $94 million
- Muthoot Finance – inflows $67 million
- Union Bank of India – inflows $66 million
- Tata Capital – inflows $28 million
Exclusions:
- ICICI Lombard General Insurance – outflows $88 million
- Info Edge (India) – outflows $80 million
- Havells India – outflows $65 million
- JSW Energy – outflows $54 million
- Life Insurance Corporation of India (LIC) – outflows $35 million
- Bajaj Housing Finance – outflows $15 million
This reshuffle highlights Tata Motors and Cummins India as the primary beneficiaries of passive inflows in the next 50 space.
Nifty Midcap 150: Top Changes
The Nifty Midcap 150 index also sees notable adjustments:
- Top 5 inclusions: Multi Commodity Exchange of India (MCX), ICICI Lombard General Insurance, Laurus Lab, Info Edge (India), Havells India
- Top 5 exclusions: Cummins India, HDFC AMC, Muthoot Finance, Union Bank, Sona BLW Precision Forgings
These changes balance midcap representation while providing visibility to high-growth companies.
Sectoral Indices: Defence & Capital Markets
Nifty India Defence:
- Inclusions: Axiscades Technologies, Apollo Micro Systems, Aequs
- Expected inflows: Axiscades & Apollo Micro Systems ~$6 million each, Aequs ~$3 million
- Exclusions: Cyient DLM – outflow $3 million, Unimech Aerospace & Manufacturing – outflow $1 million
Nifty Capital Markets:
- Inclusions: ICICI Prudential Asset Management Company (ICICI AMC) – inflow $3 million, Groww – inflow $1 million
These sector-specific adjustments align with evolving market capitalization and investor interest.
Summary
The Nifty rejig on March 27 marks a critical recalibration across multiple NSE indices. Bharti Airtel and Tata Motors emerge as the primary inflow leaders, while a host of banks and midcap stocks face weight reductions. These adjustments, effective March 30, ensure indices remain reflective of market dynamics.
Investors and market watchers should note these shifts as they influence passive investment flows across Nifty 50, Next 50, Midcap, and sectoral indices.
