HDFC Bank at risk of losing top Nifty spot to ICICI amid leadership turmoil

HDFC Bank Ltd. is barely holding on to its position as the most influential stock on India’s equity benchmark as a leadership upheaval and governance concerns deepen a selloff.

The country’s most-valuable lender’s weighting in the NSE Nifty 50 Index has shrunk to 9.81 per cent, narrowly ahead of rival ICICI Bank Ltd.’s 9.34 per cent, according to the latest data tracked by Bloomberg. The gap exceeded four percentage points at the start of the year. Reliance Industries Ltd. is currently third with a weighting of slightly above 8 per cent.

HDFC Bank CEO Sashidhar Jagdishan’s surprise decision to step aside when his term ends next month has deepened uncertainty as the lender grapples with questions over its practices, first raised by its former part-time chairman.

Its shares have tumbled 29 per cent so far this year, set for the worst annual performance since 2008, compared to a 4 per cent decline in the Nifty Bank Index. The selloff has erased more than $65 billion from HDFC Bank’s value since its peak last year, leaving it with a market capitalization of about $114.5 billion, according to data compiled by Bloomberg.

ICICI Bank, whose shares have gained about 6 per cent in 2026, is valued at nearly $109 billion.

Both banks are among the world’s most tracked lenders, with about 50 analysts covering each, according to data compiled by Bloomberg. Neither has a sell recommendation.