ICICI Bank poised to overtake HDFC Bank as largest Nifty 50 component
A sharp decline in HDFC Bank's share price has narrowed the gap between it and ICICI Bank to under half a percent, moving ICICI closer to becoming the benchmark index's top holder.
ICICI Bank is set to surpass HDFC Bank as the largest stock in the Nifty 50 index after HDFC's recent share-price drop reduced the valuation difference to less than half a percentage point. As of August 31, HDFC Bank holds approximately 9.81% weight in the index, while ICICI Bank sits at 9.34%, reversing a trend where the gap was over four percent at the start of 2026. Reliance Industries remains the third-largest component with slightly more than 8% weighting. The convergence marks the narrowest difference between the two banks since at least January 2010. HDFC Bank has lost about 29% in value this year, erasing over $65 billion from its market capitalization to reach roughly $114.5 billion, while ICICI Bank's valuation stands at nearly $109 billion following a 6% gain. Pressure on HDFC intensified after Managing Director and Chief Executive Officer Sashidhar Jagdishan announced he will not seek re-election when his current term ends on October 26. The leadership change coincides with an unsettled period involving board and senior-management transitions, including the recent resignation of part-time chairman. Index research confirms the convergence reflects sharply different share performances during this year.
