
Private lender IndusInd Bank and two-wheeler manufacturer Hero MotoCorp are likely to be removed from the Nifty 50 index in the upcoming September rebalancing, according to a note by Nuvama. Airline operator InterGlobe Aviation (IndiGo) and healthcare services provider Max Healthcare have emerged as the top contenders to replace them. Defence PSU Hindustan Aeronautics Ltd (HAL) is contender, though its probability of entering Nifty is low at present, the domestic brokerage said.
While most of the negative sentiment seems already priced in, Nuvama cautioned that any further downside in the exiting stocks could intensify closer to the adjustment date. “Until then, we don’t expect significant pressure purely from expected passive flows,” it added.
IndiGo has already rallied significantly, reflecting market anticipation. In contrast, Max Healthcare appears under-owned in this context and could attract stronger buying interest. Nuvama estimates passive inflows of over $400 million for Max Healthcare, equivalent to 12 days of average daily volume (ADV), if it is included.
The only scenario in which Max Healthcare could miss inclusion, Nuvama said, is if Hindustan Aeronautics Ltd. (HAL) outperforms it by at least 12 per cent and sustains that lead through July-end—a low-probability outcome, in its view.
Nuvama also addressed speculation around the inclusion of BSE Ltd. in the Nifty 50, ruling it out in the September 2025 review based on current index methodology. “Even a 40 per cent-plus rally in BSE sustained through July-end is unlikely to change our view, unless there's a revision in methodology,” it noted.
The cut-off date for the Nifty reshuffle is July 31. The final announcement is expected in late August, with changes taking effect from September 29. Nuvama added, “We see almost no chance of BSE even making it to the Nifty Next 50 in this review.”