Yes Bank (+1.57%, ₹22.76) and Union Bank of India (+0.57%, ₹152.20) were in the spotlight after NSE confirmed their inclusion in the Nifty Bank Index. The move follows SEBI’s directive aimed at strengthening market depth and reducing concentration risk in sectoral indices.

With these additions, the Nifty Bank basket will expand from 12 to 14 constituents, effective December 31, 2025 — aligning with the requirement that non-benchmark indices such as Nifty Bank, Finnifty, and BSE Bankex must contain at least 14 stocks to remain eligible for derivatives trading.

SEBI has also proposed: Weight caps on individual stocks, and Limits on the combined weight of the top three components, to ensure no single lender or cluster of banks disproportionately influences index movement.

These regulatory-driven inclusions are expected to spur passive flows into both counters as index-linked funds rebalance positions.

(Source: CNBC-TV18)