Nifty 50 Shake-Up Coming? IndiGo & Max Healthcare Likely In, IndusInd Bank & Hero Moto Out, Predicts Nuvama!

According to an analysis by Nuvama Alternative & Quantitative Research, Max Healthcare and InterGlobe Aviation, the parent company of IndiGo are strong contenders for inclusion in the benchmark Nifty 50 index during the upcoming review cycle. Conversely, IndusInd Bank, a lender facing ongoing challenges, and Hero MotoCorp, a key player in the automotive sector, may be removed from the index.

Max Healthcare and IndiGo Likely Candidates for Nifty 50 Inclusion; IndusInd Bank and Hero MotoCorp May Exit

The assessment period for index consideration concludes in July 2025, with the official announcement expected in the latter half of August. Any confirmed changes will come into effect from September 29, 2025.

IndiGo has already experienced a notable upward movement in its stock price, reflecting growing market confidence in its potential Nifty 50 inclusion. In contrast, Max Healthcare appears to be relatively under-owned in this context and, as such, could attract increased investor interest in the lead-up to the reshuffle. Nuvama estimates that Max Healthcare's addition could prompt passive inflows exceeding $400 million.

However, the only scenario that could potentially prevent Max Healthcare's inclusion would be a sustained outperformance of approximately 12% by Hindustan Aeronautics Ltd (HAL) over Max Healthcare through the end of July. Nuvama considers the likelihood of such an outcome to be low.

As for the likely exclusions, the brokerage firm notes that most of the negative sentiment surrounding IndusInd Bank and Hero MotoCorp has already been factored into their current valuations. Nevertheless, any further downside pressure is expected to materialise closer to the index adjustment period. "Until then, we do not anticipate any significant weakness purely due to expected passive flows," Nuvama stated.

No Chance of BSE Inclusion in Nifty 50, Says Nuvama

Amid earlier speculation about BSE Ltd-Asia's oldest stock exchange-being considered for inclusion in the Nifty 50, Nuvama's Abhilash Pagaria has decisively dismissed such prospects. "We have received several investor queries regarding BSE's eligibility. Based on the current index methodology and threshold criteria, we believe there is zero probability of BSE joining the Nifty 50 in the September 2025 review," Pagaria explained as per Moneycontrol report.

He further clarified that, after a detailed review of the methodology document, the brokerage believes BSE fails to meet multiple key eligibility requirements. In fact, Nuvama contends that the exchange is unlikely even to qualify for inclusion in the Nifty Next 50 during the upcoming review.

How Stocks Are Selected for the Nifty 50 Index ?

The Nifty 50 index undergoes a semi-annual review, based on stock performance over two six-month periods ending January 31 and July 31. Following these evaluation windows, the index is reshuffled in March and September, respectively.

The key metric used for inclusion or exclusion is the average free-float market capitalisation over the relevant six-month period. Free-float market capitalisation refers to the total value of a company's shares that are available for trading by the public, excluding shares held by promoters or locked-in stakeholders. This metric ensures that only liquid, widely-held stocks are eligible for inclusion in the index.