BSE shares to enter Nifty 50 from September 30; Check potential inflows and journey so far

Shares of the Bombay Stock Exchange Ltd. (BSE)

witnessed some profit booking from record high levels on Tuesday, August 11, on the news that shares of Asia's oldest stock exchange will now be a part of the benchmark Nifty 50 index from September 30 onwards.

The announcement was made by the National Stock Exchange (NSE) on Monday evening, as part of the bi-annual rejig of its indices. BSE will replace Wipro on the Nifty 50 index.

Wipro will also face an exclusion from the Nifty 50 for the first time since the inception of the index, barring a brief period of April-September 2013, when it was excluded as a result of the demerger of its non-IT services businesses.

According to Nuvama Alternative & Quantitative Research, the inclusion of BSE into the Nifty 50, would result in potential inflows worth $691 million for the stock, while Wipro's exclusion would result in outflows worth nearly $240 million for the stock.

BSE's inclusion on the Nifty 50 comes nearly a decade after it made its stock market debut in February 2017. The stock had an issue price of ₹806 apiece and had listed on a bourses at ₹1,069.2, a hefty premium in comparison to its issue price.

Since its listing, it has carried out a share buyback in 2019 and in 2023, along with issuing bonus shares in the ratio of 2:1 (two shares for every one share each) in 2022 and in 2025. Since its listing, BSE has also paid dividends worth nearly ₹200 per share as well to its shareholders.

For the most recent quarter, BSE's revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) remained flat from last year, while margins remained stable at 68%. Mark-to-Market gains contributed to the 10% profit jump.

During the earnings call, BSE's management stated that it is actively investing in tech infrastructure for long-term growth and will also be ending its 13-year partnership with Deutsche Borse to directly distribute and license global market data.

Shares of BSE are trading 1.2% lower on Tuesday at ₹3,560. The stock is still up 35% so far this year.