• By Vaamanaa Sethi
  • Tue, 11 Jul 2023 02:05 PM (IST)
  • Source:JND
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HDFC Bank to become the king of Nifty in terms of weightage, surpassing Reliance Industries after merging with its parent company HDFC. As HDFC shares will delist on July 13, HDFC Bank’s weightage will increase to 14.43%, according to Nuvama. 

Meanwhile, Reliance which controls 10.9% of Nifty which will get reduced to 10.8%. Other than Reliance, ICICI Bank, Infosys, ITC and TCS will also see a reduction in weightage in the key Nifty 50 index. 

As per the report, 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. 

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In case of Nifty Bank index, HDFC Bank's weight will increase from 26.9% to 29.1%, leading to inflows of about $70 million from passive funds, according to calculations by Nuvama.

Whereas, ICICI Bank’s weightage will reduce from 24.4% to 23.3%. Meanwhile, India's two largest private sector lenders ICICI Bank and HDFC Bank will together account for 52.4% of weightage in Nifty Bank.

Whereas, SBI, Kotak Mahindra Bank, and Axis Bank would also suffer from weight reduction in the banking index.

In Nifty 50, the weightage of ICICI Bank, Infosys, ITC and TCS would also be reduced. LTIMindtree, which is India's sixth largest IT company, will take HDFC's seat in Nifty.

HDFC vs RIL

In terms of market capitalisation, RIL continues to rule with Rs 18.5 lakh crore, as per yesterday’s closing session. HDFC Bank’s market capitalisation at Rs 9.26 lakh crore, stood at the third position.

Following the merger, HDFC Bank’s market capitalisation would also increase as HDFC shareholders would get 42 fully paid-up shares of HDFC Bank for every 25 held in HDFC.

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Also, HDFC Bank doesn’t have any promoter like RIL, therefore the free float of the banking giant will turn out to be the highest amongst all listed stocks.

HDFC Bank made its Dalal Street debut in 1995 at an issue price of Rs 10, which was subscribed 53.31 times. The 50 crore IPO, since then, has seen meteoric rise and has become one of the largest wealth creators of Dalal Street.