LTIMindtree gains 3% as IT firm set to replace HDFC in Nifty50 from July 13
LTIMindtree share price NSE: LTIMindtree Ltd, NSE: LTIM shares on Wednesday gained after the National Stock Exchange (NSE) announced that the IT services company will replace Housing Development Finance Corporation Ltd (HDFC) in the Nifty 50 index with effect from July 13.
LTIMindtree share price NSE: LTIMindtree Ltd, NSE: LTIM shares on Wednesday gained after the National Stock Exchange (NSE) announced that the IT services company will replace Housing Development Finance Corporation Ltd (HDFC) in the Nifty 50 index with effect from July 13. The stock opened at Rs 5,425 and gained as much as over 3 per cent to touch the day's high of Rs 5,430 from the previous close of Rs 5,250.55 on the NSE. LTIMindtree shares ended at 5,235, down by Rs 15.55 or 0.30 per cent on NSE.
On Tuesday, the stock exchange announced changes to various indices, including Nifty 50 and Nifty 100, on account of the merger of HDFC with HDFC Bank. From July 13, LTIMindtree will replace HDFC in the benchmark Nifty 50 index, and Jindal Steel & Power will take the place of the mortgage lender in the Nifty 100 index, according to the NSE. The release said the Index Maintenance Sub-Committee (Equity) of NSE Indices Ltd has decided to replace stock in various indices following the HDFC-HDFC Bank amalgamation.
The replacement of HDFC with LTIMindtree will also be "applicable to the Nifty50 Equal Weight Index". Among other indices, Mankind Pharma will replace HDFC in the Nifty 500, and Jindal Steel & Power will be included in place of LTIMindtree in the Nifty Next 500. The NSE has also announced changes to other indices. "These changes shall become effective from July 13, 2023 (close of July 12, 2023)," the release said.
LTIMindtree share price target: Should you buy, sell, or hold?
Macquarie has maintained an outperform rating on LTIMindtree with a target price of Rs 7,300.
LTIMindtree share price history
LTIMindtree's stock has given a positive return of over 24 per cent in the last 6 months (since Jan 5, 2023). In comparison, the headline index, Nifty 50, has rallied nearly 8 per cent.
The L&T Group and Mindtree merger came into operation in 2022. Post-merger, the new entity, LTI Mindtree, began trading on exchanges on November 24.
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