BSE replaces Wipro in Nifty 50 effective September 30

Imagine there is a special list of the 50 most important companies in India, called the Nifty 50.

The people who run the list check every six months to see which companies are big enough to be on it.

BSE, a company that runs one of India's stock exchanges, has become much bigger lately because many people want to buy and sell shares.

Wipro, a company that makes computer software, has become smaller in value.

To measure size, the list uses something called free-float market capitalisation, and BSE is now at least one-and-a-half times bigger than Wipro.

Because of this, BSE will join the list and Wipro will leave it on September 30.

Wipro is not being thrown out completely — it will move to a different list called the Nifty Next 50.

When the list changes, investment funds that copy it will buy shares in BSE and may sell some Wipro shares; about $97 billion of fund money follows the list.

The change shows that people are excited about India's stock market but worried about software companies, partly because of artificial intelligence.