Shares of Yes Bank and Union Bank of India rose up to 3% on December 2 on their inclusion in Bank Nifty index from December 31, 2025, announced NSE on December 1. 14 stocks will be part of the sectoral index as against the current composition of 12 stocks.
NSE also said that the weightage of the top three constituents will be capped at 19%, 14% and 10%, respectively. Initial proposal had capped the highest weight at equal to or less than 20% and combined weight of the top three constituents at lesser than or equal to 45%.
As per IIFL Alt desk, ICICI Bank and HDFC Bank will see outflows of $351 million/$331 million, which is 1.9x/1.5x of average daily volume (ADV), reported CNBC-TV18.
While Union Bank of India and Yes Bank will witness inflows of $100 million/$115 million, which is 5.x/4.9x of ADV. Other stocks with potential inflows of ADV greater than 2x are Federal Bank and AU Small Finance Bank.
The adjustments of flows due to NSE's revision will be implemented in four monthly tranches by March 2026.
Nuvama Alternative and Quantitative Research estimates inflows of $140 million and $109 million into Yes Bank and Union Bank of India due to the revision, reported Reuters.
HDFC Bank and ICICI Bank are likely to see outflows worth $322 million and $348 million due to their weightage reduction, according to Nuvama estimates.
On December 2, financial heavyweight stocks like HDFC Bank, ICICI Bank and Axis Bank fell 0.8%-1.3%.
Meanwhile, Indian Bank's stock fell 2.5% to Rs 865.65 apiece as it was widely tipped to be included in Bank Nifty index.
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