HDFC Bank is losing ground as Nifty’s top stock while ICICI Bank gains

HDFC Bank is struggling to maintain its top position on India’s equity benchmark as leadership changes and governance concerns lead to a sell-off. The lender's weight in the Nifty 50 Index has decreased to 9.81%, closely trailing ICICI Bank's 9.34%, according to Bloomberg's latest data. This gap exceeded four percentage points at the beginning of the year.

Reliance Industries takes the third spot with a weighting of over 8%. HDFC Bank's CEO, Sashidhar Jagdishan, is stepping down when his term ends, adding to the uncertainty as the bank faces questions about its practices, initially raised by its former part-time chairman. The bank's shares have fallen by 29% this year, marking the worst annual performance since 2008, while the Nifty Bank Index has declined by 4%.

This sell-off has shaved off more than $65 billion from HDFC Bank's value, bringing its market capitalization to around $114.5 billion. ICICI Bank, on the other hand, has seen a 6% increase in its shares in 2026 and is currently valued at nearly $109 billion. Both banks are among the most closely watched lenders, with about 50 analysts covering each, according to Bloomberg's data. Neither bank has a sell recommendation.