The share price of BSE and Wipro are in focus after NSE announced key changes in the semi-annual Nifty rejig. The National Stock Exchange (NSE) has announced that BSE will enter the benchmark Nifty 50 index from September 30, replacing Wipro. This is expected to reshape the flow of passive money between the two stocks.

The change will take effect after the close of trading on September 29. For BSE, the move could mean more than a change in index membership. For Wipro, the opposite could play out as index-tracking funds adjust their holdings.

So, what does the index reshuffle mean for both stocks?

BSE will become part of the Nifty 50 for the first time following the latest semi-annual index review.

The inclusion is significant because the Nifty 50 is widely tracked by exchange-traded funds, index funds and other passive investment products.

When a stock enters the index, funds that aim to replicate its performance typically need to increase their exposure to that stock.

The actual flow may vary depending on fund size, index weights and market prices around the effective date. However, the expected buying could increase demand for BSE shares around the implementation of the rejig.

Wipro will leave the Nifty 50 and move to the Nifty Next 50.

This will be the first time the information technology company is being removed from the Nifty 50 since the index was launched, apart from its brief exclusion between April and September 2013 following the demerger of its non-IT services businesses.

The move means funds tracking the Nifty 50 will no longer need to hold Wipro as part of their benchmark exposure.

However, Wipro will enter the Nifty Next 50. This means some buying demand could emerge from funds tracking that index, partly offsetting the impact of its Nifty 50 exclusion.

The reshuffle goes beyond BSE and Wipro.

Five stocks will enter the Nifty 100: BSE, Hitachi Energy India, Polycab India, Vedanta Aluminium Metal and Vodafone Idea. Indian Hotels, Lodha Developers, REC, Shree Cement and United Spirits will move out.

The Nifty Next 50 will also undergo five changes, with Hitachi Energy India, Polycab India, Vedanta Aluminium Metal, Vodafone Idea and Wipro entering the index.

The Nifty 500 will see an even bigger churn, with 27 stocks entering and 27 leaving.

For BSE shareholders, the key question now is whether the expected passive demand translates into sustained buying after the index inclusion.

In the case of Wipro, investors will watch whether passive selling creates temporary pressure or whether the stock finds support from its move into the Nifty Next 50.

The changes will officially take effect on September 30, but the market could begin pricing them in well before that date.