BSE, IndiGo shares jump up to 3% on likely inclusion into Nifty 50

Mumbai, June 23, 2025:
Shares of Bombay Stock Exchange Ltd (BSE) and InterGlobe Aviation Ltd (IndiGo) surged up to 3% in Monday’s trade amid heightened market speculation about their potential inclusion in the Nifty 50 index in the upcoming semi-annual rebalancing by NSE Indices. The likely reshuffle, set for announcement in the coming weeks and effective from end-August 2025, has triggered renewed investor interest, especially from institutional and passive funds.

BSE and IndiGo Lead Gains in Anticipation

BSE Ltd shares climbed 3.01% to hit an intraday high of ₹3,232, while IndiGo (InterGlobe Aviation Ltd) gained 2.75%, touching ₹3,759 on the NSE. Market volumes spiked for both counters as traders and fund managers positioned themselves ahead of a widely expected revamp of the benchmark index.

"Both BSE and IndiGo meet most eligibility criteria, including high free-float market capitalization, liquidity thresholds, and sectoral balance, which positions them as frontrunners for inclusion," said Mehul Desai, Head of Index Strategies at Trivantage Capital.

Nifty 50 Index Review Due Soon

The NSE Indices Ltd, a subsidiary of the National Stock Exchange, conducts its semi-annual index review in March and September, with the changes being effective from the last trading Thursday of June and December, respectively. However, market participants begin speculating a month in advance based on eligibility metrics.

Inclusion in the Nifty 50, India’s flagship benchmark equity index, is significant as it attracts capital from index-tracking mutual funds, ETFs, and global institutional investors, often translating to fresh inflows and price support.

According to ICICI Securities, passive funds tracking the Nifty 50 could bring in ₹1,800–₹2,200 crore of incremental flows into each new entrant, boosting near-term stock performance.

What’s Driving BSE and IndiGo’s Candidacy?

BSE Ltd: The Exchange Stock in Focus

BSE, which has seen a dramatic rerating in FY25, has nearly doubled in value over the past year. Its foray into faster-growing segments like SME platforms, commodity derivatives, and the revamped surveillance framework has made it a standout performer among exchange stocks.

"Strong earnings growth, operating leverage, and a higher proportion of annuity-like income from annual listing fees and transaction charges make BSE a compelling candidate," said Rashi Gupta, equity strategist at Quantum Advisors.

IndiGo: India’s Aviation Titan

IndiGo has not only retained its leadership position in domestic aviation but also significantly improved its international footprint. The airline’s post-pandemic turnaround, lean balance sheet, and network expansion across Europe, Middle East, and Southeast Asia have caught investor attention.

"The stock fits the liquidity and performance metrics required for Nifty inclusion. In terms of average free-float market cap, IndiGo ranks within the top 35, which makes it a legitimate contender," said Anand Rathi, aviation sector analyst at Motilal Oswal.

Sectoral Implications of Inclusion

If BSE and IndiGo are inducted, they may replace stocks with relatively lower trading volumes or falling market caps. Analysts speculate that Divi’s Labs, BPCL, or Hero MotoCorp could be at risk of exclusion based on historical patterns and recent underperformance.

The reshuffle would also ensure broader sector representation, bringing in underweighted sectors such as aviation and capital markets into the benchmark basket, which is currently dominated by financials, IT, and energy.

Analyst View: A Positive Signal for Long-Term Investors

Market experts view such inclusions as a long-term validation of fundamental strength, which not only attracts passive flows but also boosts credibility among global asset allocators.

“Inclusion in Nifty 50 is not just a trading event—it reflects the company’s evolving scale, investor engagement, and strategic relevance in the Indian growth story,” said Neha Jindal, fund manager at InCred Mutual Fund. “For long-term investors, it marks a transition to institutional-grade investability.”

Investor Outlook: Ride the Momentum or Stay Cautious?

While the pre-rebalancing momentum has historically led to short-term gains, analysts advise discretion. Stocks often run up in anticipation, only to correct post-inclusion due to front-loaded buying.

"We have seen stocks like SRF and Adani Enterprises rally into the Nifty but underperform immediately after. Investors should evaluate fundamentals rather than chase flows," warned Vikas Chauhan, technical analyst at Angel One.

Nevertheless, the structural growth prospects of both BSE and IndiGo remain compelling, making them candidates not just for Nifty inclusion, but also for portfolio inclusion on merit.

The strong rally in BSE and IndiGo shares on Monday signals heightened market confidence in their likely inclusion into the Nifty 50 index during the upcoming review. While passive fund flows could add momentum, investors are advised to balance expectations with fundamental diligence. If confirmed, their entry would enhance sectoral diversity and market depth in India’s most tracked equity index.