Next week, as part of the merger between HDFC and HDFC Bank, India’s top mortgage lender, HDFC, will be replaced on the Nifty 50 benchmark index by LTIMindtree, the country’s sixth-largest IT company.
Starting from July 13, 2023, LTIMindtree will take the place of HDFC on the Nifty 50 index. Additionally, HDFC will be replaced by different stocks on various other indices, including Nifty Financial Services and the broader Nifty 500 index, among others.
The inclusion of LTIMindtree is expected to attract an inflow of approximately $150-$160 million from passive funds.
On the Nifty Financial Services index, LIC Housing Finance, a leading home mortgage loan provider, will replace HDFC. On the Nifty 500 index, HDFC will be replaced by the pharmaceutical company Mankind Pharma.
Similarly, Jindal Steel and Power will replace HDFC on the Nifty Next 50 and Nifty 100 indices. On the other hand, Phoenix Mills will take HDFC’s place on the Nifty Housing index. While Ambuja Cements will replace HDFC on the Nifty High Beta 50 index.
The Index Maintenance Sub-Committee (Equity) of NSE Indices Limited has made these replacement decisions due to the amalgamation scheme involving Housing Development Finance Corporation and HDFC Bank. These changes will come into effect on July 13, as stated by the stock exchange.