ICICI Bank’s Nifty 50 weight hits record 9.45%, closes in on HDFC Bank

ICICI Bank’s weight in the Nifty 50 has risen to a record 9.45%, marking its highest-ever representation in the benchmark index. 

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According to NSE data cited in the Moneycontrol report, the private sector lender’s weight stood at 9.45% at the close of September 2. The latest figure is above its previous peak of 9.41%, recorded in July 2025. 

ICICI Bank has added 113 basis points to its Nifty 50 weight over the past three months. Its weight stood at 8.32% at the end of May 2026 before rising to 9.01% in June and 9.22% in July. It reached 9.45% in August. 

The Nifty 50 is based on free-float market capitalisation, meaning changes in a company’s freely available shares can affect its weight in the index. 

ICICI Bank narrows gap with HDFC Bank 

The rise has brought ICICI Bank closer to HDFC Bank, which remained the highest-weighted banking stock in the Nifty 50 at the end of August. 

HDFC Bank had a 9.85% weight in the index, leaving a gap of just 40 basis points between the two lenders. A period of stronger relative performance could therefore bring ICICI Bank closer to the top position among banking stocks in the index. 

ICICI Bank’s current weight is also significantly higher than it was in earlier years. In March 2009, the bank accounted for 1.96% of the Nifty 50. Its weight subsequently fell to 4.19% in June 2018 during the period of the Reserve Bank of India’s asset quality review. 

The bank’s index representation has since more than doubled. Over the years, ICICI Bank has shifted its focus towards retail lending, SME business banking and technology-driven underwriting. 

Analysts remain positive 

The Moneycontrol report said ICICI Bank has a unanimous ‘buy’ rating among 42 tracked brokerage analysts, with price targets from foreign brokerages ranging between Rs 1,700 and Rs 1,935. 

Goldman Sachs has a target of Rs 1,935 and considers ICICI Bank a core compounder in Indian banking. Bernstein SocGen has a target of Rs 1,800, while Jefferies has retained the bank as its top sector pick with a target of Rs 1,750. 

JPMorgan and Nomura have targets of Rs 1,735 and Rs 1,700, respectively. 

The brokerages cited factors including the bank’s return ratios, loan growth prospects, asset quality and digital adoption. 

Higher weight could also support passive flows 

ICICI Bank’s increasing weight in the Nifty 50 also has implications for passive investment products that track the index. 

Nifty 50 exchange-traded funds and index funds allocate their holdings according to the weight of individual stocks in the index. With ICICI Bank now accounting for 9.45% of the index, a corresponding portion of money entering Nifty-linked passive products is allocated to the bank. 

At 9.45%, ICICI Bank is now just 55 basis points away from a 10% weight in the Nifty 50. The bank’s rising representation reflects its growing presence in the benchmark index and brings it closer to HDFC Bank’s position at the top.