Following the HDFC merger, HDFC Bank is set to dethrone Reliance Industries as the bluechip with the heaviest weightage in the benchmark Nifty 50. Once HDFC’s shares have been delisted from the key index on July 13, HDFC Bank’s weightage will increase to 14.43% while Reliance Industries’ weightage will fall 10 bps to 10.8%, according to Nuvama.
Nifty 50 constituents weight change
Other than Reliance Industries, ICICI Bank, Infosys, ITC and TCS will see a reduction in weightage in the key Nifty 50 index. As a result, the companies’ shares will see a combined passive outflow of $50 million. The inclusion of LTIMindtree will bring in $155 million in passive inflows, with a weightage of 0.5% in the index.
IndusInd Bank, Bank of Baroda, AU Small Finance Bank, Federal Bank, IDFC First Bank, Punjab National Bank and Bandhan Bank will see an increase in weightage once HDFC’s shares are delisted. Cumulatively, the rise in weightage will bring in $19 million of passive inflows. SBI, Kotak Mahindra Bank and Axis Bank will see a reduction in weightage, leading to passive outflows of $52 million.
HDFC twins merger
Experts project that following the amalgamation, the lending powerhouse will boast of an assets totalling Rs 18 lakh crore. The merged entity will be the second largest bank in India after SBI, and double the size of private lender ICICI Bank. “After 45 years in public finance, providing 9 million homes for Indians, we have to find a home for ourselves. And, we have found a home in our own family company HDFC Bank,” Deepak Parekh had said when plans for the merger were announced.