Analyst's Diary: Index inclusion = Magic?

Stocks making it into a blue-chip index are often seen as golden tickets for quick gains. The assumption is simple: index inclusion should lead to a price rally, since passive funds have to accumulate the stock. But does this strategy actually hold up? We analysed 40 stocks added to the Nifty 50 index in the last 15 years (up to February 2024) and found that reality doesn't align with the hype.