The upcoming March 2026 semi-annual index review of the Nifty 50 is expected to deliver no change. According to Nuvama Alternative & Quantitative Research, none of the current stocks meet the stringent market-capitalisation and liquidity thresholds required to displace existing constituents, leaving the country’s flagship index set for a status quo. The index review will be based on average market capitalisation and liquidity data for six months through 31 January 2026, with the official announcement expected in the second half of February and the changes taking effect at the end of March.
Yet, that surface stability masks a far more dynamic reshaping underway beneath. While the Nifty 50 may stand still, Nuvama expects pronounced churn across the broader index universe—driven by the sheer scale of recent initial public offerings (IPOs) and the accelerating entry of new-age, platform-led companies into India’s public markets. The rebalancing, effective 30 March, could mark an inflection point where freshly listed firms and digital-first businesses begin to exert meaningful influence across mid- and small-cap indices, subtly but decisively altering the market’s structural composition.
Big reshuffles
At the forefront of this transition are Tata Capital Ltd and ICICI Prudential Asset Management Co., both of which Nuvama expects to enter the Nifty Next 50 and, by extension, the broader Nifty 100 basket.
Tata Capital’s market capitalization has climbed more than 9% since October 2025 to around ₹1.52 trillion, supported by steady post-listing performance and positive Street sentiment. According to Bloomberg, seven brokerages currently carry buy ratings, with no sell calls on the stock, reflecting confidence in the lender’s growth outlook and balance-sheet strength.
ICICI Prudential AMC has delivered an even stronger showing. Since its December listing, the stock has rallied over 19%, taking its market capitalisation to around ₹1.45 trillion. Analysts attribute the gains to strong investor demand, improving assets under management and healthy earnings visibility. All four brokerages tracking the stock currently have buy ratings, with no sell calls, highlighting how asset managers and non-bank financial firms are steadily carving out space within benchmark indices long dominated by banks and industrial heavyweights.
Within the Nifty Next 50, Nuvama expects potential inclusions to include Tata Capital, ICICI Prudential AMC and Muthoot Finance Ltd, along with either HDFC Asset Management Co. or Cummins India Ltd, depending on movements at the Nifty 50 level.
Index exits
For every new entrant, however, an established name must make way.
Bajaj Housing Finance Ltd, whose market capitalization has declined more than 19% over the past year to about ₹76,999 crore, is among the stocks facing potential exclusion. Street views on the stock remain divided, with four brokerages maintaining buy ratings and five recommending a sell.
Havells India Ltd, whose market value has fallen over 10% to ₹89,378 crore, has also come under pressure following a weak Q2FY26 performance. Softer summer-product demand and delayed consumer spending after the GST transition have weighed on earnings expectations.
Other stocks likely to exit the Nifty Next 50 include ICICI Lombard General Insurance Co, Naukri Ltd, and either JSW Energy Ltd or REC Ltd, subject to final parent-index adjustments.
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Mid-cap churn
The churn becomes more visible as one moves down the market-capitalization ladder.
In the Nifty Midcap 150, Nuvama expects the entry of LG Electronics India Ltd, Groww parent BillionBrains Garage Ventures Ltd, Meesho Ltd and Lenskart Solutions Ltd–names that reflect the rising influence of consumer-tech, fintech and digital platforms within India’s equity markets.
LG Electronics India’s shares have risen more than 20% since October, supported by overwhelmingly positive Street sentiment. Seventeen of the 19 brokerages covering the stock currently maintain buy ratings, even as its market capitalisation has moderated from around ₹1.1 trillion earlier to about ₹94,169 crore.
BillionBrains Garage (Groww) has seen an even sharper rally. Its shares have surged over 63% in the same period, lifting market capitalization from ₹80,837 crore to roughly ₹1.1 trillion, backed by buy calls from four of five brokerages. Meesho’s stock has climbed more than 44%, while Lenskart has gained about 8%.
Correspondingly, several established names are expected to exit the Midcap 150 to make room for the new cohort. HDFC AMC, Muthoot Finance, Exide Industries Ltd, LIC Housing Finance Ltd and Sona BLW Precision Forgings Ltd are among the stocks likely to move out as the index absorbs recently listed heavyweights.
“This reflects a clear wave of new-age companies entering the mid- and small-cap universe,” said Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research. He described the upcoming rejig as muted for the Nifty 50 but highlighted “meaningful churn” across broader indices as heavyweight IPOs integrate.
Small-caps: Deepest reshuffle
The transformation is most pronounced in the Nifty Smallcap 250, where the list of potential inclusions reads like a snapshot of India’s evolving entrepreneurial economy.
Nuvama flags PhysicsWallah Ltd, Piramal Finance Ltd, Exide Industries, Honeywell Automation India Ltd and Ajanta Pharma Ltd as likely entrants. At the same time, a clutch of established names—including Laurus Labs Ltd, Authum Investment & Infrastructure Ltd, Muti Commodity Exchange of India Ltd, Kaynes Technology Ltd and Radico Khaitan Ltd—are expected to drop out, reinforcing the sense of churn at the lower end of the market.
Nuvama, however, cautions that its projections remain sensitive to two key risks: any revisions to NSE index methodology and sharp fluctuations in free-float factors, both of which could alter the final composition.
