Nifty Bank Reshuffle: State-run Canara Bank makes entry while Bandhan Bank pushed out
Canara Bank has entered the Nifty Bank index at the cost of Bandhan Bank as part of the semi-annual rejig. Canara Bank's average free-float market capitalisation stood at Rs 38,973 crore over six months as against Bandhan Bank's Rs 15,945 crore.
With its inclusion, Canara Bank is expected to receive flows of $ 84 million whereas Bandhan Bank might witness outflows of $ 47 million, according to a note from JM Financial.
The Index Maintenance Sub-Committee (Equity) of NSE Indices on Friday made the changes in the 12-stock index and the same will become effective from September 30, 2024, (close of September 27, 2024).
Canara Bank has outperformed Nifty Bank over a one-year period delivering returns of 68% as against 14% given by the latter. In contrast, Bandhan Bank has seen its share price erode by 15% in the period.
Changes have also been made to the headline Nifty50 index where Tata Group stock Trent and state-run Bharat Electronics have been included while LTIMindtree and Divi's Laboratories made exits.
After the index reshuffling, Trent and BEL are expected to receive inflows of $ 523 million and $ 394 million, respectively. On the other hand, LTI Mindtree and Divi’s Laboratories are expected to witness outflows of $ 205 million and $ 221 million, respectively.
In the Nifty Next 50, the inclusions will be Bharat Heavy Electricals (BHEL), Divi's Laboratories, JSW Energy, LTIMindtree, Macrotech Developers, NHPC, Union Bank of India while the exclusions will be Berger Paints India, Bharat Electronics, Colgate
