India’s leading IT services company, LTIMindtree Ltd., is poised to replace Housing Development Finance Corp. Ltd. (HDFC) in India’s benchmark index, marking the conclusion of the largest merger in the country’s corporate history.
LTI Mindtree To Replace HDFC in Nifty 50
The National Stock Exchange announced that LTIMindtree, formed through the merger of Mindtree Ltd. and L&T Infotech Ltd., will move from the Nifty Next 50 to the prestigious Nifty 50 index, effective from July 13.
This change will also apply to the Nifty 50 Equal Weight index.
Effective from July 13, a series of changes will take place in the Nifty indices as a result of the merger between HDFC Ltd. and its banking unit HDFC Bank Ltd.
This merger has made HDFC Bank the world’s fourth-largest lender in terms of market capitalization but has led to the exclusion of India’s largest mortgage lender from all Nifty indices.
Changes in Nifty 100 Index
The following is an overview of the changes:
- In the Nifty 100 index, Jindal Steel and Power Ltd. will replace HDFC.
- Mankind Pharma Ltd. will replace HDFC in the Nifty 500, Nifty 200, Nifty Large Midcap 250, and Nifty Total Market.
- LIC Housing Finance Ltd. will take HDFC’s place in the Nifty Financial Services index.
- Poonawalla Fincorp Ltd. will replace HDFC in the Nifty Financial Services Ex-Bank index.
- Phoenix Mills Ltd. will replace HDFC in the Nifty Housing index.
- Brigade Enterprises Ltd. will replace HDFC in the Nifty Core Housing index.
- Ambuja Cements Ltd. will replace HDFC in the Nifty High Beta 50 index.
- HDFC will be excluded from the Nifty 100 ESG, Nifty100 Enhanced ESG, and Nifty100 ESG Sector Leaders indices, without any replacements.
- Cummins India Ltd. will replace Jindal Steel and Power in the Nifty Midcap Liquid 15 index.
Moreover, LTIMindtree is the sixth Indian IT services company to be included in the Nifty 50 index, joining Tata Consultancy Services Ltd., Infosys Ltd., HCL Technologies Ltd., Wipro Ltd., and Tech Mahindra Ltd.
Preliminary estimates by Mumbai-based brokerage firm Nuvama suggest that LTIMindtree could witness an inflow of approximately $150-160 million due to its inclusion in the Nifty 50.
On Tuesday, LTIMindtree Ltd.’s shares experienced a 0.59% increase to reach Rs 5,242 per share on the NSE, while the benchmark Nifty 50 concluded the day 0.34% higher at 19,389 points.
