Nifty 50 Rejig: In the upcoming Nifty 50 rejig, multibagger stocks Interglobe Aviation (IndiGo) and Max Healthcare are likely to enter the benchmark index, replacing auto major Hero MotorCorp and private sector lender IndusInd Bank, as per projections by Nuvama Alternative & Quantitative Research.
IndiGo is likely to see passive inflows of around $515 million on the inclusion in the Nifty 50 index, and Max Healthcare could corner $147 million in passive flows, Nuvama projected.
IndiGo has already seen substantial positive price action, reflecting market expectations, the brokerage said amid a 27% rise in the multibagger airline stock on a year-to-date (YTD) basis.
“On the other hand, Max Healthcare appears under-owned on this theme and could see more buying interest. We estimate that Max Health’s inclusion would imply passive buying of over $400 million (~12 days of ADV),” it added.
The only scenario where Max Health may miss inclusion is if Hindustan Aeronautics (HAL) outperforms Max Health by ~12% immediately and sustains that outperformance through July-end — an outcome we view as low probability, Nuvama analysts said.
Amid the possibility of inclusion in the Nifty 50 index, Max Financial shares were trading in the green, up nearly 2% today. The healthcare stock has delivered multibagger gains of 262.23% in the last three years, while IndiGo has added 254% in the same period.
Nifty 50 Exclusions
According to the brokerage, Hero MotoCorp and IndusInd Bank remain its high-conviction names, likely exiting the index.
“While much of the negative sentiment appears to be priced in, we believe any further downside will be more pronounced around the adjustment period. Until then, we don’t expect significant pressure purely from expected passive flows,” it added.
Hero Moto share price is down 23% in a year, while IndusInd Bank stock has lost 41%.
The cut-off period ends in July, and the official announcement is expected in the latter half of August, with index adjustments effective September 29, 2025.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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