NSE Index Changes May Drive $159 Mn Into Vedanta Demerged Stocks

NSE Indices' upcoming September 2026 rebalancing could channel up to $159 million of passive inflows into four newly demerged Vedanta companies, led by Vedanta Aluminium Metal, estimates by Nuvama Alternative and Quantitative Research showed.

Vedanta Aluminium Metal is expected to account for the bulk of the inflows at around $149 million, followed by Vedanta Oil & Gas at $4 million. Vedanta Power and Vedanta Iron & Steel could each attract passive inflows of about $3 million, the brokerage said.

Among other Vedanta group companies, Sterlite Technologies is estimated to receive passive inflows of around $10 million, while parent Vedanta could witness passive outflows of about $13 million following the index changes.

Vedanta Aluminium Leads Inflows

NSE Indices has announced changes to the Nifty 500, Nifty 100 and Nifty Next 50 as part of its semi-annual review. The revised indices will come into effect from September 30, 2026, after the close of trade on September 29.

The Nifty 100 will see Indian Hotels, Lodha Developers, REC, Shree Cement and United Spirits exit the index. They will be replaced by BSE, Hitachi Energy India, Polycab India, Vedanta Aluminium Metal and Vodafone Idea. The same changes will also apply to the Nifty 100 Equal Weight index.

The Nifty Next 50 will also undergo five changes. Indian Hotels, Lodha Developers, REC, Shree Cement and United Spirits will make way for Hitachi Energy India, Polycab India, Vedanta Aluminium Metal, Vodafone Idea and Wipro.

Wipro's inclusion follows its removal from the Nifty 50. Under NSE's methodology, the Nifty and Nifty Next 50 constituents are selected from the Nifty 100 universe, with stocks entering the reconstituted Nifty 100 but not featuring in the Nifty 50 becoming part of the Nifty Next 50.

Demerged Companies Report Mixed Q1 Performance

The newly listed Vedanta companies reported mixed June-quarter results following the group's demerger.

Vedanta Aluminium posted a more than threefold jump in consolidated net profit to ₹5,629 crore in Q1 FY27 from ₹1,781 crore a year earlier, while revenue from operations rose 46% year-on-year to ₹21,393 crore.

Vedanta Oil & Gas reported a consolidated net profit of ₹945 crore, reversing losses reported in both the year-ago quarter and the preceding March quarter. Revenue increased about 8.5% year-on-year to ₹2,507 crore.

Vedanta Iron & Steel also returned to profitability, reporting a consolidated net profit of ₹122 crore compared with a net loss of ₹142 crore in the corresponding quarter last year.

Vedanta Power, however, reported a standalone loss of ₹449 crore for the June quarter, compared with a profit of ₹75 crore a year earlier. On a consolidated basis, the company posted a loss of ₹423 crore against a profit of ₹88 crore in the corresponding period last year.