Change in Bank Nifty: Now the weightage of the top 3 banks in Bank Nifty will not exceed 43%. The weightage of the 4 largest banks in the top 4 steps of Bank Nifty will decrease. Union Bank and Yes Bank will also be part of Nifty. These will be included in Bank Nifty from December 31. The weightage of smaller banks will increase in Nifty Bank.
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Changes in Bank Nifty: The January series will see significant changes in the Bank Nifty. The Bank Nifty will now have 14 stocks instead of 12. The weighting of large banks will also be reduced. The NSE’s final index management circular has been issued regarding the changes to the Bank Nifty. As a result, the number of stocks in the Bank Nifty will increase from 12 to 14. The weighting of the top three banks in the Bank Nifty will no longer exceed 43%. The weighting of the four largest banks in the top four tiers of the Bank Nifty will decrease. Union Bank and Yes Bank will also be part of the Nifty. These will be included in the Bank Nifty from December 31st. The weighting of smaller banks in the Nifty Bank Nifty will increase.
Outflows Possible in Large Banks
This change is likely to lead to outflows in large banks. HDFC Bank could see $322 million in outflows. ICICI Bank could see $348 million in outflows. Axis Bank could also see outflows of $51 million. Similarly, an outflow of $48 million is possible from Kotak Bank.
Which banks will receive the inflow?
Due to this change, investments of $140 million could come to YES BANK. Union Bank could receive $109 million. Federal Bank could also receive $78 million. IDFC FIRST BANK could receive $63 million.
Bullish Momentum Maintains in PSU Banks
Amidst this news, the bullish momentum in PSU banks continued today. The Nifty PSU Bank Index also gained 1 percent today. Union Bank and Bank of Baroda were among the top gainers in futures. Union Bank is trading around 160 rupees, up 5.46 rupees, or 3.54 percent. Its day’s high was 160 rupees. This stock has returned 4.47 percent in one week and 7.81 percent in one month. It has gained 33.4 percent in one year.
Bank of Baroda is trading above Rs 300, up ₹4.95, or 1.67%. Its daily high today was ₹303.95. The stock has returned 4.46% in one week and 7.40% in one month. It has gained 21.81% in one year.
