NSE Indices will make changes to Nifty Fixed Income indices from August 31

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Highlights

NSE Indices Limited will remove 7.10% GOVT. STOCK 2034 and 6.33% GOVT. STOCK 2035 from the Nifty G-Sec indices from August 31, 2026, and make several replacements including 7.06% GOVT. STOCK 2041.
These changes will alter the components, maturity profile, and duration exposure of the relevant indices, requiring tracking funds and portfolios to adjust their allocations.
There are no structural changes at the G-Sec level of the Nifty Fixed Income PRC Indices, but weight adjustments will be implemented from August 31, 2026, updating market representation.

This article was translated from the original. Read the original version by our correspondent here.

Index Rebalancing Effective from August 31

According to the National Stock Exchange of India, the Index Maintenance Sub-Committee (Debt) of NSE Indices Limited has announced changes in the Nifty G-Sec maturity-based and duration-based indices after the monthly review. In the 4-8 year G-Sec index, 7.10% GOVT. STOCK 2034 is being removed and 6.54% GOVT. STOCK 2032 is being added, while in the 11-15 year G-Sec index, 7.23% GOVT. STOCK 2039 and 6.92% GOVT. STOCK 2039 are being removed and 7.06% GOVT. STOCK 2041 and 6.83% GOVT. STOCK 2039 are being added.

From the Nifty Composite G-Sec Index, 6.33% GOVT. STOCK 2035 is being removed and 7.06% GOVT. STOCK 2041 is being added. There are no changes in the NIFTY 8-13 yr G-Sec Index and Nifty 15 yr and above G-Sec Index.

In duration-based indices, 6.97% GOVT. STOCK 2026 is being removed from the Nifty Ultra Short Duration G-Sec Index and 7.33% GOVT. STOCK 2026 is being added. In the Nifty Medium Duration G-Sec Index, 6.75% GOVT. STOCK 2029 is being replaced by 7.17% GOVT. STOCK 2030, while in the Nifty Long Duration G-Sec Index, 6.90% GOVT. STOCK 2065 is being removed and 7.06% GOVT. STOCK 2041 is being added.

There are no changes in the Nifty Low Duration G-Sec Index, Nifty Short Duration G-Sec Index, and Nifty Medium to Long Duration G-Sec Index. All these changes will be effective from August 31, 2026, and will be considered after the closing levels of August 30, 2026.

Impact on Debt Market and Tracking Products

These amendments will change the component mix, maturity profile, and duration exposure of the relevant indices, requiring funds, portfolio managers, and benchmark-based investment products tracking them to adjust their allocations. The inclusion of 2041, 2039, 2032, and short-term 2026 securities especially brings a new balance to representation across different duration segments.

There are no component changes at the G-Sec index level in the Nifty Fixed Income PRC Indices, but various weight adjustments will be effective from August 31, 2026. This indicates that the NSE index framework is updating market representation not only through security selection but also via weight structure.

Our previous report discussed the rebalancing in the Nifty500 Shariah index following the monthly Shariah compliance review by NSE Indices Limited. It detailed which companies were being removed/added to the index and that these changes would be effective from August 31, 2026, potentially impacting the holdings of investors and products tracking this benchmark.

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