BSE’s average free‑float market capitalization for six months exceeds Wipro’s six‑month average free‑float market capitalization, a key technical criterion that secured BSE’s inclusion in the benchmark NIFTY50 index. The Indian equity markets are exhibiting a lackluster performance at the benchmark level, with NIFTY50 trading in red on a YTD basis in 2026, down nearly 11%. At the stock‑specific level, 37 of the 50 index constituents trade in red in 2026, while 13 trade in positive, further underscoring the broader weakness in the index.

As the end of Q2FY27 approaches, the index rejig will take place on September 30. This half‑yearly rejig balances the index weightage by including new performing sectors and excluding underperforming ones from the index. In the current rejig, BSE is included in the benchmark NIFTY50 index, replacing Wipro after its nearly three‑decade‑long run. The change reflects a structural shift in the composition of the benchmark, which comprises the top 50 constituents of the economy and the top stocks by market capitalization.

The IT sector has been highly underperforming the benchmark index in recent years due to sectoral headwinds in the aftermath of Artificial Intelligence. Many key IT stocks such as TCS, Infosys, Tech Mahindra, and HCL Technologies are trading over 30% down from their record highs. Among them, Wipro has been grossly underperforming, declining over 33% in the trailing twelve months and 38% in 2026 on a YTD basis. Meanwhile, shares of India’s oldest stock exchange have seen a strong rally in the same period.

Beyond the fundamental reason, the BSE’s average free‑float market capitalization for six months is more than Wipro’s six‑month average free‑float market capitalization, which remains a key technical reason for BSE’s inclusion in the benchmark NIFTY50 index. The inclusion or exclusion from the index often triggers major fund flow activity from the stock as index funds or exchange‑traded funds that mirror the index rebalance their holdings accordingly. The change in stock composition leads to million‑dollar inflows in the stock included and outflows from the stock excluded.

Data analysis of stocks excluded and included from the NIFTY50 index in the last five years shows that among the 10 stocks excluded, 7 delivered positive returns in the next six months and 9 delivered positive returns in the next year. UPL (+33%), BPCL (+25%) and Britannia (+23.8%) were the top gainers in the first six months among the excluded stocks. On a one‑year basis, BEL was the sole loser with -14% returns, while 9 other stocks gained as much as 44% post exclusion.

Similarly, among the 11 stocks included, 7 showed positive results in the first six months after inclusion. Top performers included Eternal (+60%) and Shriram Finance (+53%). Adani Enterprises (-49%), Trent (-29%) and IndiGo (-29%) were the top underperformers in the first six months after inclusion. On a one‑year basis, only 6 stocks delivered positive returns, while four delivered negative returns, with Bharat Electronics rising the most with 41% returns and Trent losing 38% the most.