The stock of BSE is expected to attract around $700 million in passive inflows following its entry into the Nifty 50, as funds tracking the benchmark rebalance their portfolios to include the stock. The inflow is expected to be largely concentrated around the September 30 rebalance, with Nuvama Alternative & Quantitative Research estimating $695 million of buying in BSE from Nifty 50-linked funds. He expects 85-90 per cent of the buying to come from domestic ETFs and index funds, with global Nifty 50 trackers contributing a smaller share. The immediate demand is largely mechanical, but analysts expect the impact of index membership to extend beyond the September rebalance as every incremental rupee flowing into Nifty 50 passive funds now buys BSE too, he said. It can also make the stock more relevant to global investors and active funds that use the Nifty 50 as a reference point,” Bardia said.