Nifty bank reshuffle: State-run Canara Bank enters while Bandhan Bank is pushed out

PSU stock Canara Bank has entered the Nifty Bank index at the expense of Bandhan Bank as part of a semi-annual rejig. Bandhan Bank’s Rs. 15,945 crore against Canara Bank’s average free-float market capitalization in six months at Rs. 38,973 crores.

With its inclusion, Canara Bank is expected to receive an inflow of $84 million while Bandhan Bank may witness an outflow of $47 million, according to a JM Financial note.

The Index Maintenance Sub-Committee (Equity) of NSE Indices on Friday made changes to the 12-stock index with effect from September 30, 2024 (closer to September 27, 2024).

Canara Bank has outperformed Nifty Bank by 68% in one-year period against 14% for the latter. In contrast, Bandhan Bank has seen its share price decline by 15% over the period.

There have also been changes in the headline Nifty50 index where Tata Group Stock Trent and state-run Bharat Electronics have been included while LTIMindtree and Divi’s Laboratories have exited.

After the index change, Trent and BEL are expected to receive inflows of $523 million and $394 million, respectively. On the other hand, LTI Mindtree and Divini Laboratories are expected to witness outflows of $205 million and $221 million respectively.

Nifty Next 50 will include Bharat Heavy Electricals (BHEL), Divini Laboratories, JSW Energy, LTIMindtree, Macrotech Developers, NHPC, Union Bank of India while excluding Berger Paints India, Bharat Electronics, Colgate Palmolive (India). ), Marico, SBI Cards and Payment Services, SRF and Trent.

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)