HDFC Bank share price: On expectations that the private sector lender’s weighting in the MSCI Emerging Market index will be doubled, HDFC Bank’s share price finished at an all-time high on Wednesday.
The bank’s foreign portfolio investor (FPI) holdings fell below the global index provider’s threshold of 55%, which set off the optimism.
Its share price closed at Rs 1,768.35, up 2.18 per cent from the previous day’s close.
Also Read “Yeh Rishta Kya Kehlata Hai Twist: Madhav’s Death, Abhira Fate”!
Additionally, the American Depositary Receipts (ADR) of the bank have rallied 4.48 per cent overnight to close at $66.97.
According to the bank’s disclosure, as of June 2024, foreign shareholding in the bank is down to 54.83 per cent from 55.54 per cent in March 2024.
The foreign shareholding in the bank is now less than the 55% required to raise the MSCI adjustment factor from 0.5x to 1x, meaning that HDFC Bank’s MSCI weight might double in the August rebalance, according to a Macquarie Research research released on Wednesday. According to the analysis, HDFC Bank’s 3.9% weight in MSCI India could increase to 7.8%, bringing in an estimated $5.2 billion in passive capital.
Since June 4, HDFC Bank’s share price has increased by 19%, putting a stop to its protracted underperformance. Over the same period, the stock has outpaced both the Nifty Bank Index and the Nifty benchmark index, which were up 13% and 11%, respectively.
In the lead-up to its weight in the MSCI Index being rebalanced in August, analysts anticipate more upside for the company. IIFL Alternative Research predicts that in the lead-up to the weight-up event, the share price of HDFC Bank will increase by 4-6 percent.
Stay Connected With us: Siasatpro.com
Recent Comments