Four newly demerged Vedanta Group entities could attract combined passive inflows of up to $159 million following the NSE Indices' September 2026 reshuffle, according to projections by Nuvama Alternative and Quantitative Research.

Vedanta Aluminium Metal is expected to receive the bulk of the inflows, while Vedanta Power and Vedanta Iron and Steel could each see approximately $3 million in passive buying as a result of the index rebalancing.

The projected inflows stem from the periodic rebalancing of NSE's benchmark indices, including the Nifty 50 and related sub-indices. When stocks are added to or see their weight adjusted within these indices, passive funds such as index-tracking mutual funds and exchange-traded funds (ETFs) are required to adjust their holdings to mirror the updated composition, generating buy-side or sell-side flows. India's passive fund universe has grown materially over the past several years, making index inclusions and weight changes an increasingly meaningful driver of trading flows for newly listed companies.

The Vedanta Group, controlled by billionaire Anil Agarwal through London-listed Vedanta Resources, recently completed a demerger of its parent company, Vedanta Limited, into separate, independently listed entities organized by business segment. The demerged companies span aluminium, power, iron and steel, and oil and gas businesses. This restructuring was aimed at simplifying the corporate structure and allowing each vertical to pursue its own growth and capital-allocation strategy, a playbook previously used by other large Indian conglomerates seeking to unlock shareholder value through greater operational focus.

The September 2026 index rejig by NSE Indices, the subsidiary of the National Stock Exchange of India responsible for maintaining the Nifty suite of indices, is expected to result in the inclusion or reweighting of these newly listed Vedanta entities. According to Nuvama's analysis, the adjustment will trigger passive fund inflows as index-replicating portfolios realign. The actual quantum of flows will depend on the entities' free-float market capitalization and trading liquidity at the time of the review.

The Nifty indices are reviewed semi-annually, with changes typically taking effect in March and September. These reviews evaluate stocks based on criteria including free-float market capitalization, liquidity, and listing history.