The weightage of HDFC Bank on Nifty has exceeded that of Reliance Industries.


New Delhi: After the reverse merger of HDFC Bank and HDFC (HDFC Bank-HDFC merger), HDFC Bank has become the new Bahubali of Nifty. The weightage of the bank in the index has exceeded that of Mukesh Ambani’s company Reliance Industries. Trading in HDFC shares will cease on the stock exchange on July 13. After the merger, the weightage of HDFC Bank will increase to 14.43%. At present, the weightage of Reliance on Nifty is 10.9%, which will come down to 10.8%. According to Monday’s closing price, Reliance’s market cap is Rs 18.5 lakh crore while HDFC is at number three with a market cap of Rs 9.26 lakh crore. The market cap of HDFC Bank will increase after the merger.

Unlike Reliance, HDFC Bank does not have a promoter. This is the reason why it will have the highest free float among all the listed stocks. NSE uses the free float market cap method to calculate the index weight. That is, the stocks which have the highest free float, their weightage will be higher. In the Nifty Bank index too, the weightage of HDFC Bank will increase from 26.9 per cent to 29.1 per cent. The weightage of ICICI Bank will come down from 23.3 per cent to 24.4 per cent. The total weightage of HDFC Bank and ICICI Bank in Nifty Bank will be 52.4%. The weightage of SBI, Kotak Mahindra Bank and Axis Bank will decrease in the banking index. ICICI Bank, Infosys, ITC and TCS will also have lower weightage in Nifty50. LTI Mindtree will replace HDFC in Nifty.

HDFC-HDFC Bank Merger: HDFC Bank shares surged after merger, stock reached 52-week high

was subscribed 53.31 times

HDFC Bank had a stellar debut in Dalal Street. When the company’s IPO opened on March 14, 1995, it was subscribed 53.31 times. Since then it has been among the top money making stocks for investors. The stock has given flat returns in the last three months and closed at Rs 1,656.30 on BSE on Monday. According to Morgan Stanley, its target price has been fixed at Rs 2,110. Reliance’s stock is moving towards all time high. It went up to Rs 2,764.50 on Tuesday. Its all-time high is Rs 2,856.15. The stock had reached this level on April 29 last year.

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