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SEBI Shakes Up Bank Nifty: Private Banks Fall as PSU Banks Rally on New Index Rules

SEBI Shakes Up Bank Nifty: Private Banks Fall as PSU Banks Rally on New Index Rules

Market regulator SEBI announced sweeping changes to Bank Nifty composition rules on October 30, triggering a sharp divergence between private and PSU bank stocks. While HDFC Bank and ICICI Bank face potential outflows of nearly $500 million, PSU banks like Union Bank and Yes Bank could see inflows worth over $470 million as the index expands from 12 to 14 stocks.

By Praveen Yadav