IDFC Bank to be the next Nifty Midcap 50 stock

From November 15, the private sector lender IDFC Bank will be included in the NSE's Nifty Midcap 50 index while Havells India, on the other hand, will move out of the index.

At 2:58 PM, IDFC Bank share price was trading at Rs. 76.70 with the rise of almost 2%.

India Index Services & Products Ltd, which maintains Nifty indices, made a statement saying that the changes would become effective from November 15, 2016.

Earlier this month, IDFC Bank was included for trading in the securities lending and borrowing segment.

Previous to that, the exchange had commenced futures and options (F&O) contracts in IDFC Bank from September 30.

There are at present over 200 securities available in the F&O segment for trade.

IDFC Bank share price have gained nearly 70% in the last eight weeks due to the better growth prospects and the chance of a merger with parent IDFC Ltd.

Rajiv Lall, founder, managing director and chief executive of IDFC Bank, stated in August that the new on-tap banking license rules would make it likely to merge with its parent. The company said then that it was in talks with the SEBI on this issue.

IDFC share price rose 22%, while Sensex rose 2.1% in the last eight weeks.

IDFC Bank started operations on 1 October 2015, turning from an infrastructure focused lender into a universal bank. IDFC was one of two entities that acquired a banking license from the Reserve Bank of India (RBI) in 2014.

Since commencing its banking business, IDFC Bank has made two planned acquisitions. The Bank has acquired a Tamil Nadu-based microfinance institution (MFI) called Grama Vidiyal for an unrevealed amount. The bank also acquired a 10% stake in Dhaka-based ASA Int’l India for Rs.8.5 crore.

Since 3 August, IDFC Bank share price has surged 70.48% compared with a 4.5% gain for the Bank Nifty index.

The Bank’s better growth outlook, improving asset quality, better operational metrics, improving RoA and higher profit growth is going to re-rate the stock price and its valuation will proliferate in years to come.

IDFC Bank is the top 500 stock for the quarter as per Dynamic Levels. For the details on the stock, visit IDFC Bank share price history page of the Dynamic Levels website.