Yes Bank, Union Bank Share Price Rise After Bank Nifty Inclusion Effective 31 December

Mumbai, 2 December 2025: Shares of Yes Bank Ltd and Union Bank of India Ltd advanced in Monday’s trade after the National Stock Exchange (NSE) announced their inclusion in the Bank Nifty index from 31 December 2025. The revision expands the index composition from 12 to 14 stocks.

Bank Shares Gain as Index Inclusion Drives Rebalancing Flows

Both counters saw upward movement during the session as the inclusion trigger led to expectations of index-related fund flows. 

On 2 December 2025, Union Bank of India share price closed at ₹155.59, up ₹1.40 (0.91%). The stock opened at ₹155.01, reached a high of ₹160.15, and a low of ₹154.44 during the day. The company has a market capitalisation of ₹1.19 lakh crore, a price-to-earnings (P/E) ratio of 6.42, and a dividend yield of 3.05%, with a quarterly dividend of ₹1.19. Its 52-week high and low are ₹160.15 and ₹100.81, respectively.

On 2 December 2025, Yes Bank share price closed at ₹22.76, up ₹0.31 (1.38%). The stock opened at ₹22.59, recorded a high of ₹22.93, and a low of ₹22.42 during the session. The bank has a market capitalisation of ₹71,250 crore, a P/E ratio of 25.07, and no dividend yield for the quarter. Over the past 52 weeks, Yes Bank’s shares have fluctuated between a high of ₹24.30 and a low of ₹16.02.

NSE stated that, following the reconstitution, the weightage of the top three constituents will be capped at 19%, 14% and 10%, adjusting the earlier proposal that allowed a top weight of up to 20% with the combined top-three capped at 45%.

Capping Rules Trigger Adjustment Forecasts with Outflows from Heavyweights

Changes to constituent weights are expected to realign capital flows across index-linked products. According to estimates from IIFL Alternate Desk, ICICI Bank and HDFC Bank may see outflows of $351 million and $331 million, amounting to 1.9x and 1.5x of their average daily volume (ADV), respectively.

In contrast, Union Bank of India and Yes Bank are projected to witness inflows of $100 million and $115 million, equal to 5.x and 4.9x their ADV. Additional potential beneficiaries with possible inflows above 2x ADV include Federal Bank and AU Small Finance Bank.

NSE further confirmed that all flow adjustments arising from the rebalancing will be phased across four monthly tranches and completed by March 2026.

Estimates Show Inflows into Yes Bank and Union Bank, While Large Banks May See Outflows

Separate projections from Nuvama Alternative and Quantitative Research anticipate inflows of $140 million into Yes Bank and $109 million into Union Bank of India. Conversely, HDFC Bank and ICICI Bank are expected to register outflows of $322 million and $348 million, respectively, owing to weight reductions.

Meanwhile, shares of other large private-sector banks—HDFC Bank, ICICI Bank, and Axis Bank—were down between 0.8% and 1.3% during the session. Indian Bank declined 2.5% to ₹865.65, as it was widely anticipated to be added to the index but was ultimately not included.

The inclusion of Yes Bank and Union Bank of India in the Bank Nifty effective 31 December will result in scheduled index rebalancing and associated fund flow adjustments through March 2026. Weightage caps and reconstitution details offer clarity on expected shifts across index-linked instruments without implying any investment action or sentiment.

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