LTIMindtree Set To Replace HDFC In Nifty 50 Index Effective 13 July

LTIMindtree, a subsidiary of Larsen & Toubro (L&T), is set to replace Housing Development Finance Corporation Limited (HDFC) in the Nifty 50 index, as announced by the National Stock Exchange (NSE) on Tuesday. This change comes in response to the scheme of amalgamation between HDFC and HDFC Bank. Starting from 13 July, LTIMindtree will take the place of HDFC in the crucial Nifty 50 index and Jindal Steel & Power will replace the mortgage lender in the Nifty 100 index, according to NSE.

The NSE stated that the Index Maintenance Sub-Committee (Equity) of NSE Indices Limited made the decision to replace stocks in various indices following the HDFC-HDFC Bank merger. The replacement of HDFC with LTIMindtree will also apply to the Nifty50 Equal Weight Index.

In addition to these changes, Mankind Pharma will replace HDFC in the Nifty 500 index, and Jindal Steel & Power will replace LTIMindtree in the Nifty Next 500 index. Other changes include LIC Housing Finance replacing HDFC in Nifty Financial Services, Poonawalla Fincorp replacing HDFC in Nifty Financial Services Ex-Bank, Phoenix Mills replacing HDFC in Nifty Housing, and Brigade Enterprises and Ambuja Cements replacing HDFC in Nifty Core Housing and Nifty High Beta 50, respectively.

The amalgamation of HDFC, the parent company of HDFC Bank, into the lender was completed on Saturday. The merger, valued at $40 billion, is the largest deal in Indian corporate history and was driven by regulatory changes that limited the benefits of HDFC operating as a non-bank lending entity. The record date for determining HDFC shareholders eligible to receive shares of HDFC Bank is set for 13 July.

These changes in the index constituents will take effect from the close of 12 July 2023, as stated in the NSE release.