LTIMindtree hits 52-week high on news of replacing HDFC in Nifty 50

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July 5, 2023
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LTIMindtree is the fifth-largest IT services provider in the country based on market capitalization and the sixth-largest based on revenue.

Shares of LTIMindtree jumped over 3 percent to a 52-week high of Rs 5,430 in early trade on July 5 as the company gets slated to replace Housing Development Finance Corporation (HDFC) from the Nifty 50 index from July 13.

LTIMindtree’s inclusion in Nifty 50 comes after the merger between HDFC and HDFC Bank came into effect on July 1.

Abhilash Pagaria, Head of Nuvama’s Alternative & Quantitative Research, anticipates passive inflows of approximately $172 million for LTIMindtree on the back of its entry into the Nifty 50 league.

He also expects an outflow of around $50 million due to adjustment in Nifty Next 50 which would take the net inflows to somewhere between $125-130 million.

At 9.23am, shares of LTIMindtree were trading at Rs 5,284.25 on the National Stock Exchange, up 0.6 percent from the previous close.

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Despite expectations of strong inflows for the information technology major, Pagaria believes most of the index rebalance pre-emptive positioning is well priced in the counter.

Also Read: LTIMindtree to replace HDFC in Nifty 50 from July 13

Last week, shares of the IT company had also moved sharply higher in anticipation of its inclusion in the headline index. Following the completion of the amalgamation between the HDFC twins, LTIMindtree will become India’s 50th company by market capitalisation.

Its is also worth noting that LTIMindtree too is a result of a big merger between L&T Infotech and Mindtree which took place in December last year. LTIMindtree began trading on the domestic stock exchanges with its new name on December 5, 2022. Following the merger, the combined company now ranks as the fifth-largest IT services provider in the country based on market capitalisation and the sixth-largest based on revenue.

Also Read: LTIMindtree likely to replace HDFC Ltd in Nifty 50

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