HDFC-HDFC Bank merger could set off Rs 48k-cr Nifty50 churn: Brokerage

Market players seek clarity from exchanges on the exclusion rule

The imminent merger between Housing Development Finance Corporation (HDFC) and HDFC Bank could lead to a churn of nearly Rs 48,000 crore in the benchmark Nifty50 index. Currently, both the financial sector behemoths have considerable weightage in the 50-share index.

Closer to their effective merger date, both HDFC and HDFC Bank will be removed from the Nifty, say strategists at ICICI Securities, citing a rule around index computation methodology. The rule says any entity which undergoes a scheme of merger gets excluded from the index. In 2016, Grasim was removed from the Nifty index ahead of its merger with