Important News from HDFC Bank: Keep an Eye on Today’s Stock Market Activity

HDFC Bank Share Movement Expected Today

HDFC Bank’s shares might see some action today, Wednesday. On Tuesday, the bank released the shareholding pattern for the June quarter, which showed that the holding of Foreign Portfolio Investors (FPIs) in the bank has fallen below 55%.

HDFC Bank’s ADR Increased by More Than 2%

This level is below the MSCI cut-off. If FPI holding falls below this level, the bank’s weightage in the MSCI index could increase, potentially attracting an inflow of 3 to 4 billion dollars. Following this indication, HDFC Bank’s ADR increased by more than 2%. It is now expected that HDFC Bank’s stock may also respond to these signals in Wednesday’s trading.

FPI Holding Declined to 54.83%

According to the data released on the BSE, FPI holding decreased from 55.54% to 54.83% in the June quarter on a quarter-to-quarter basis. Brokerage firm BoFA Securities noted that if FPI shareholding in HDFC Bank decreases, it will meet MSCI headship standards, potentially leading to purchases worth up to ₹34,000 crore by MSCI funds.

Over 10% Increase in Stock in One Month

Additionally, FII headroom in HDFC Bank has increased to 25%. FII headroom is the percentage of shares available in the company for foreign investors. HDFC Bank’s stock closed at the 1730 level on Wednesday, up 1.5%. During trading, the stock reached the 1734 level. A month ago, the stock was at the 1572 level, meaning it has increased by over 10% in a month.

Expected Increase in Bank’s Weightage in MSCI Index

HDFC Bank released the shareholding pattern on Tuesday. According to information disclosed on the BSE, FII shareholding has fallen below the MSCI cut-off. It is now believed that the bank’s weightage in the MSCI index will increase.

The Matter Explained

There has been a long wait for the shareholding information of HDFC Bank, which has now been released. In simple terms, it shows whose share has increased and by how much. The bank provided this information to the exchange. According to the disclosed information, the FII share has fallen below 55%.

Increase in FII Headroom

In simple terms, there will be more opportunities for investment. FII shareholding has fallen below the MSCI cut-off.

Bank’s Weightage to Increase Due to Decreased Shareholding

Due to the increase in weightage, an inflow of $300-400 million is expected. FII shareholding in the bank has decreased to 54.83%.

Performance of HDFC Bank Shares

In terms of performance, HDFC Bank’s share increased by 13% in one month, 17% in three months, and 2% in one year.