Big Changes Coming to Bank Nifty: Two New Stocks, New Rules!
Big Changes Coming to Bank Nifty: Two New Stocks, New Rules!
The Bank Nifty index is about to get an important update. Currently, the index has 12 stocks, but this number is set to increase to 14 stocks. The two new additions are likely to be Bank of Baroda and Union Bank of India. These changes are based on free-float market capitalization, which is how stocks are chosen for the index
💰 Money Inflow Expected
With these two banks being added:
Bank of Baroda could see a fresh inflow of ₹900 crore.
Union Bank may receive around ₹600 crore in inflows.
🗓 When Will This Happen?
Although SEBI has officially given time until November 3, 2025 for this change, sources suggest that NSE might implement it as early as the end of June or the beginning of July 2025.
📊 Current Weight Limits in Bank Nifty
To keep the index balanced:
No single stock can have more than 33% weight.
The top three stocks combined cannot exceed 62% of the index.
At present:
HDFC Bank has the highest weight: 27.82%
ICICI Bank comes second: 25.18%
Axis Bank is third with: 8.4%
Together, these three make up around 61.4%, which is within the current limit.
🔁 What’s Changing?
Along with the new stock additions, the rules are also getting a slight tweak:
The maximum weight for a single stock will now be reduced to 30% (down from 33%).
✅ Why This Matters
These changes are meant to diversify the index, reduce risk, and increase representation. With more banks included and tighter limits on how much weight each stock can have, Bank Nifty will better reflect the broader banking sector.
Latest Course
Latest posts
Our Recent FAQS
Frequently Asked Question &
Answers Here
What changes are being made to the Bank Nifty index?
The Bank Nifty index is increasing its constituents from 12 to 14 stocks, with Bank of Baroda and Union Bank of India expected to be added.
Why are these stocks being added to the index?
When will the changes take effect?
What other updates are happening to the index rules?
Copyright © By Empirical F&M Academy. Design & Developed by Techno Duniya
