HDFC Bank’s Lead Over ICICI Bank in Nifty 50 Narrows Amid Continued Share Price Decline
5paisa Capital Ltd
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Last Updated: 3rd September 2026 - 05:11 pm
The HDFC Bank faces the threat of losing its place as the most important stock in the Nifty 50 index due to a prolonged fall in its stock prices, leading to a reduction in the weight of the stock in the benchmark index, thereby coming close to its competitor ICICI Bank.
Invest in Indian Markets and Unlock Future Potential With 5paisa!According to data compiled by Bloomberg, the weight of HDFC Bank in the NSE Nifty 50 Index has fallen to 9.81% versus 9.34% of ICICI Bank. The difference between these two companies was more than four percentage points at the start of the year. Reliance Industries occupies the third spot in the list with slightly over 8% weight.
The narrowing gap comes at a time when HDFC Bank is facing heightened uncertainty following Chief Executive Officer Sashidhar Jagdishan’s decision to step down when his current term ends next month. The development has added to concerns surrounding the lender as it deals with questions over certain practices that were earlier raised by its former part-time chairman.
HDFC Bank shares have declined 29% so far in 2026, putting the stock on track for its weakest annual performance since 2008. In comparison, the Nifty Bank Index has fallen 4% during the same period.
The decline in the stock has wiped out more than $65 billion from HDFC Bank’s market value since its peak last year. The lender’s market capitalisation currently stands at about $114.5 billion, according to Bloomberg data cited in the report.
Meanwhile, ICICI Bank has moved in the opposite direction. Its shares have gained around 6% so far this year, helping the bank’s market value reach nearly $109 billion.
Despite the divergence in stock performance, both lenders continue to attract significant analyst coverage globally. Bloomberg data cited in the report showed that around 50 analysts track each of the two banks, and neither stock currently carries a sell recommendation.
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