Combined HDFC Bank Set To Replace Reliance As Top Heavyweight In Nifty 50

HDFC Bank Ltd. is set to replace Reliance Industries Ltd. as the biggest heavyweight in Nifty 50, according to BQ Prime's calculation.

The exit of Housing Development Finance Corp. from the benchmark Nifty 50 will likely give the combined HDFC Bank the biggest weight on the index and alter the contribution of other constituents.

To begin with, LTIMindtree Ltd. will replace HDFC from July 13. HDFC Bank will issue additional shares to investors of HDFC.

The combined HDFC Bank will be fully owned by public. What that means is that its free float will rise from the current 79% to 100% to Rs 11.05 lakh crore.

That will widen the free float-based Nifty 50. Add to that the Rs 89,600 crore worth of LTIMindtree shares held by public shareholders, Nifty's market cap will increase by Rs 7.4 lakh crore to Rs 83.75 lakh crore on its base of June 30.

That will increase the weight of the merged HDFC Bank in Nifty 50 to around 13%, according to index calculations by BQ Prime. Prior to the merger, HDFC Bank had a weight of 8.9% and HDFC at 6.1%.

LTIMindtree will likely have a 1.07% weight.

The changes in Nifty 50 will also impact the weightages of other companies. The merged HDFC Bank will have the highest free float market cap and the highest weight. It will be followed by Reliance Industries Ltd., ICICI Bank Ltd., Infosys Ltd. and ITC Ltd.