The Nifty indices rejig is set to take effect starting tomorrow, bringing a notable shuffle among the stocks included in these key market benchmarks. Every quarter, the Nifty indices undergo a rebalancing exercise where certain stocks are added or removed, and weightages adjusted based on fresh market data. This periodic rejig affects portfolio allocations and can lead to significant inflows into some stocks while others face outflows as index funds and passive funds realign their holdings.

For investors and market watchers, this event is crucial as it often triggers increased volatility and stock price movements, especially for the companies impacted directly by the rejig.

In the latest rejig effective from December 30, 2025, several noteworthy changes are being implemented. For instance, stocks like Hero MotoCorp and Bharti Airtel are among those expected to see substantial inflows. Hero MotoCorp alone is anticipated to attract estimated inflows worth approximately $92 million, a significant volume driven by index funds aligning their holdings to the revised benchmark.

Conversely, some major names face the prospect of outflows. ICICI Bank, for example, is likely to experience the largest outflow with an estimated impact of around $152 million. HDFC Bank and Bharat Electronics Limited (BEL) are also expected to witness notable outflows as the indices shed stocks that no longer fit the revised criteria.

The rejig reflects broader sectoral shifts and valuations as the market evolves, influencing decisions by fund managers and institutional investors who track the Nifty indices closely.

From a sectoral perspective, the rejig continues to emphasize technology and consumer discretionary stocks, which have been gaining ground on the back of strong earnings and growth potential. Meanwhile, some financial stocks are being trimmed down to balance the portfolio mix.

It’s essential for retail investors to keep an eye on these movements since large inflows or outflows can temporarily distort the stock prices, creating trading opportunities or risks. Market participants often react to the expected fund flows even before the rejig takes effect, leading to pre-rebalance activity in the market.

Today’s market showed volatility with a mixed bag of sectoral performances, signaling that investors are absorbing various global cues, corporate earnings, and macroeconomic developments as they position themselves ahead of the rejig.

In summary, the Nifty indices rejig bringing the new lineup tomorrow is a pivotal market event. Stocks like Hero MotoCorp and Bharti Airtel are poised to benefit from strong inflows, while ICICI Bank, HDFC Bank, and BEL may see selling pressure as funds rebalance.

Investors should stay informed and consider these index changes while making their investment decisions, as the rejig could influence short-term price action and trading volumes in the affected stocks.