The sixth-largest IT company LTIMindtree will replace HDFC in Nifty-50 index on July 13.
The decision to this effect was taken at the board meeting of Index Maintenance sub-committee (Equity) of NSE Indices on Tuesday, following the proposed merger of HDFC with HDFC Bank. The changes will be effective from July 13, said NSE.
As per market estimates, LTIMindtree should see an inflow of about $150-160 million from passive funds due to inclusion in Nifty index. With a revenue of about $4.2 billion, LTIMindtree, a subsidiary of L&T, trails behind TCS, Infosys, HCL Tech, Wipro and Tech Mahindra.
Currently, LTIMindtree is part of Nifty Next50 index. From July 13, Jindal Steel and Power will take its place in Nifty Next 50.
HDFC Bank has successfully completed the merger of HDFC with itself on July 1, after getting all requisite shareholder and regulatory approvals. However, it has fixed July 13 as the record date for the share-swap between HDFC Bank and HDFC as part of the merger.
Share swap
HDFC Bank will issue 42 new equity shares for every 25 equity shares of HDFC held by shareholders on July 13.
While LTIMindtree was up one per cent at ₹5,248, HDFC and HDFC Bank gained 0.33 per cent and 0.53 per cent at ₹2,881 and ₹1,729 on Tuesday.
Mankind Pharma has been included in Nifty500, Nifty Midcap150, Nifty Midcap100, Nifty200 and other indices. Nifty Financial Services will include LIC Housing Finance in place of HDFC. Zydus Lifesciences will replace Jindal Steel & Power in Nifty Midcap Select.