Wed Dec 03 04:30:00 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided text:
Bank Nifty to Expand, Yes Bank and Union Bank of India Surge as Inclusion Announced
Mumbai, India – The Bank Nifty index is set for a significant expansion, with Yes Bank and Union Bank of India slated to be included effective December 31, 2025. The National Stock Exchange (NSE) made the announcement on December 1st, triggering a rally in the shares of both banks, which saw gains of up to 3% on December 2nd.
The inclusion of Yes Bank and Union Bank of India will increase the number of constituents in the sectoral index from 12 to 14. However, not all banking stocks benefited from the news. Indian Bank’s shares fell by 2.5% to ₹865.65 per share, as it missed the expected inclusion.
While Yes Bank and Union Bank celebrated, heavyweight financial stocks like HDFC Bank, ICICI Bank, and Axis Bank traded lower, experiencing declines ranging from 0.8% to 1.3%.
The NSE also announced revisions to the weighting of the top stocks in the index. The top 3 stocks will now be capped at a maximum weight of 19%, 14% and 10% respectively.
Analysts predict significant fund flow adjustments as a result of these changes. IIFL Alt Desk estimates inflows of $100 million and $115 million into Union Bank of India and Yes Bank, respectively, representing approximately 5 times and 4.9 times their average daily turnover (ADV). Conversely, outflows of $351 million and $331 million are anticipated from ICICI Bank and HDFC Bank, equating to 1.9 and 1.5 times their ADV.
Nuam Alternatives and Quantitative Research echoed these sentiments, projecting inflows of $140 million for Yes Bank and $109 million for Union Bank, while forecasting outflows of $322 million and $348 million for HDFC Bank and ICICI Bank, respectively.
The adjustments related to these fund flows will be implemented in four monthly installments, scheduled to conclude in March 2026. This gradual approach aims to minimize disruption to the market. Federal Bank and AU Small Finance Bank are also expected to witness inflows of more than 2 times their ADV.
First Piper 