LTIMindtree, a global technology consulting and digital solutions company, will replace Housing Development Finance Corporation Ltd (HDFC) in benchmark Nifty 50 index following the mega merger of the mortgage-lending pioneer with India's largest private lender HDFC Bank. The change will come into effect on July 13.

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"The Index Maintenance Sub-Committee (Equity) of NSE Indices Limited has decided to make replacement of stock in various indices as listed hereunder on account of scheme of amalgamation of Housing Development Finance Corporation Ltd. with HDFC Bank Ltd. These changes shall become effective from July 13, 2023 (close of July 12, 2023)," according to an official statement.

HDFC Ltd will stop trading from July 13 and, according to brokerage Nuvama's preliminary calculations, LTIMindree is expected to see an inflow of $150 million to $160 million.

"We can expect Nifty Indices to official announce replacement within a day or two of official communication on exchanges of record date from HDFC Ltd," Abhilash Pagaria, head at Nuvama Alternative & Quantitative Research had earlier said, adding that preliminary calculations suggest LTIMindtree should see an inflow of roughly $150 million to $160 million.

In December last year, LTIMindtree marked the commencement of trading on the domestic stock exchanges under its new name. The merged entity is the country's fifth-largest IT services provider by market capitalisation and sixth-largest by revenue.

Shares of LTIMindtree Ltd settled 0.59 percent higher at Rs 5,242 apiece in Tuesday's trade. The stock has rallied 21.28 percent on a year-to-date basis, while it rose 5.36 percent in the last one year.

First Published:Jul 4, 2023 6:42 PM IST