ICICI Bank Challenges HDFC Bank, Nifty Weight Reaches All-Time High

Mumbai: ICICI Bank has reached a major milestone, with its weight in the Nifty 50 climbing to a record 9.45 percent at the close on September 2.

The weight shows how a company influences the index. ICICI Bank’s share has risen by 113 basis points, or 1.13 percentage points, in three months.

From 8.32 percent at the end of May 2026, it increased to 9.01 percent in June, 9.22 percent in July and 9.45 percent in August. The rise reflects the bank’s stronger share price and free-float market capitalisation.

Close To HDFC Bank

ICICI Bank is now closing in on HDFC Bank, whose Nifty 50 weight stood at 9.85 percent at August-end. The difference between them has narrowed to only 40 basis points.

If ICICI Bank continues to outperform HDFC Bank, it could challenge its rival’s position as the banking stock with the highest weight in the index.

Strong Long-Term Turnaround

ICICI Bank’s Nifty weight has grown nearly 4.8 times from 1.96 percent in March 2009. It had slipped to 4.19 percent in June 2018 amid concerns over legacy corporate bad loans.

The bank subsequently strengthened its balance sheet, expanded retail and MSME lending, and invested in technology. These changes improved its performance and investor confidence.

Brokerages Remain Bullish

All 42 analysts tracking the stock recommend buying it. Brokerages have set target prices ranging from Rs 1,700 to Rs 1,935.

Goldman Sachs has the highest target of Rs 1,935, citing the bank’s ability to sustain return on assets above 2.2 percent. Bernstein has set a Rs 1,800 target, while Jefferies calls it its preferred banking stock and expects 15 percent loan growth through FY29.

Passive Inflows May Help

A higher index weight can attract more institutional money because Nifty-linked ETFs and index funds invest according to each company’s weight.

For every Rs 100 entering a fund, about Rs 9.45 may flow into ICICI Bank shares. However, a higher weight alone is not a buy signal. Earnings, valuation, bad loans, interest rates and market conditions remain equally important.