NSE Indices will make changes to Nifty fixed-income indices from September 30

Traders Union
All News
Financial News
NSE Nifty fixed-income changes

Highlights

NSE Indices will rebalance Nifty fixed-income indices such as the Nifty PSU Bond Plus SDL Apr 2027 50:50 and Nifty G-sec Jun 2027 from September 30.
The Nifty G-sec Jun 2027 Index will replace 8.24% Govt. Stock 2027 with 7.33% Govt. Stock 2026, while the PSU Bond Index will add new-maturity securities from its issuers.
Several securities from major institutions will be replaced in the Nifty AAA Ultra Short Duration, Low Duration, and Short Duration corporate bond indices to preserve their credit and maturity profiles.

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

Rebalancing of target maturity indices

According to the National Stock Exchange of India, the changes include the Nifty PSU Bond Plus SDL Apr 2027 50:50 index, Nifty G-sec Jun 2027 Index, and certain indices in the Bharat Bond series. Under this review, some existing securities are being removed and replaced with securities featuring new maturity profiles, ensuring that the indices' composition remains aligned with their specified tenors.

In the Nifty PSU Bond Plus SDL Apr 2027 50:50 index, certain securities of Indian Railway Finance Corporation, Indian Renewable Energy Development Agency, NHPC, Nuclear Power Corporation of India, and Power Finance Corporation are being removed, while alternative securities from the same issuers are being added. In the Nifty G-sec Jun 2027 Index, 8.24% Govt. Stock 2027 is being removed and 7.33% Govt. Stock 2026 is being added.

Several securities from Housing and Urban Development Corporation, Indian Renewable Energy Development Agency, National Bank for Agriculture and Rural Development, National Bank for Financing Infrastructure and Development, REC, and Small Industries Development Bank of India are being added to the Nifty BHARAT Bond Index, April 2030. One security of India Infrastructure Finance Company Limited is being added to the Nifty BHARAT Bond Index, April 2032, while no changes are being made to the April 2031 and April 2033 indices.

Impact on corporate bond indices

As part of the quarterly review, several securities are also being replaced in the Nifty AAA Ultra Short Duration Bond Index, Nifty AAA Low Duration Bond Index, and Nifty AAA Short Duration Bond Index. Securities being removed include certain bond series from LIC Housing Finance, Indian Railway Finance Corporation, REC, National Bank for Agriculture and Rural Development, Small Industries Development Bank of India, and Tata Capital.

New additions include securities from REC, Power Finance Corporation, National Bank for Agriculture and Rural Development, Indian Railway Finance Corporation, LIC Housing Finance, Small Industries Development Bank of India, and Housing and Urban Development Corporation. This rebalancing is part of the process of keeping fixed-income indices aligned with their duration, credit profile, and maturity structure, which is important for index-based investment products and institutional investors.

Our previous report detailed the changes under review by NSE Indices Limited in Nifty equity indices that are set to take effect from September 30, 2026. It discussed the inclusion and exclusion of companies across several thematic, strategy, Shariah, and value indices, as well as the potential impact on tracking and capital flows in index funds, ETFs, and derivative products.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.