Leaner Bank Nifty on Sebi's new menu: A big-bank diet feeds a $1.5 bn churn

Sebi's weight-watching exercise caps HDFC and ICICI at 20%; smaller lenders get a larger slice

The Securities and Exchange Board of India’s (Sebi’s) new framework for non-benchmark indices is expected to trigger around ₹12,900 crore ($1.5 billion) worth of reshuffling in the National Stock Exchange’s (NSE’s) Nifty Bank index.

 

Yes Bank and Union Bank of India will join the index under the revised rules, according to Brian Freitas, an analyst at Periscope Analytics who writes on Smartkarma. Indian Bank narrowly missed out, ranking just below Union Bank of India, he said.

 

Freitas estimates that trading volumes in the new entrants could jump tenfold around the rebalance dates. 

At present, HDFC Bank and ICICI Bank together