As part of its semi-annual reconstitution, BSE Index Services has announced a major overhaul of the BSE 500 index — 32 new stocks will be added, and an equal number removed — effective from December 22, 2025.
📈 Key Highlights of the Re-jig
- Among the notable inclusions are ITC Hotels and Reliance Power, marking a significant shift in the index composition.
- The re-constitution isn’t limited to BSE 500 alone — changes are also being made across multiple indices, including BSE Sensex 50, BSE SME IPO, BSE Smallcap and others, reflecting broad-based adjustments across large-, mid- and small-cap segments.
- The basis for inclusion or exclusion: the decisions are driven by metrics such as market capitalisation, free float and trading liquidity — ensuring that the index better reflects current market realities.
✅ What This Means for Investors & Market Watchers
- Stocks getting added (like ITC Hotels, Reliance Power, and 30 others) will automatically see increased visibility and potentially higher trading volumes due to index-linked funds, ETFs or passive funds that track BSE 500.
- Companies exiting the index may face pressure on stock price or liquidity, especially those previously depending on passive fund flows.
- The broader reshuffle could lead to performance divergence between “index-linked” stocks and “non-index” names — for investors, this makes checking index-inclusion status more relevant when evaluating holdings.
- For sector or small-cap investors, changes in the satellite indexes (SME, Smallcap) along with BSE 500 reshuffle may shift relative performance — a reminder that index composition matters for benchmark comparisons.
