BSE set to join Nifty as Wipro exits index

The Nifty 50 index is set to undergo a composition change with the Bombay Stock Exchange (BSE) joining the benchmark, while IT services company Wipro makes its exit. The move reflects ongoing adjustments to India's key equity indices based on liquidity and market dynamics.

Macquarie has recently started coverage on BSE shares, assigning an 'outperform' rating to the exchange operator. The global brokerage has positioned BSE above the National Stock Exchange (NSE) in its ranking of capital market stocks, signalling confidence in the former's growth prospects.

The index reshuffle carries implications for fund managers and investors who track Nifty-linked portfolios. Passive funds and exchange-traded funds following the benchmark will need to rebalance their holdings to reflect the composition change.

BSE's inclusion in the Nifty underscores the growing relevance of market infrastructure stocks among domestic investors. The exchange operator has been expanding its product offerings and technological capabilities to compete with NSE's dominant market position.

Wipro's exit from the index reflects the evolving composition of India's IT sector representation in benchmark indices. The company continues to face headwinds in the global technology services market, affecting its valuation relative to other index constituents.