The composition of the Nifty 50 index plays a crucial role for index funds, hedge funds, and exchange-traded funds that benchmark their allocation to indices. However, in the case of the HDFC Bank and merger, there will be no significant outflows from funds benchmarked to the Nifty 50, as the shares of HDFC will be converted into HDFC Bank shares. Shareholders will receive 42 fully paid-up shares of HDFC Bank for every 25 shares held in HDFC.