HDFC Bank share price jumps over 3% to 52-week high
In early trade on june 3, hdfc bank shares shot up more than 3% to a 52-week high of ₹1,791.90 a share. This is in contrast to predictions of significant passive fund inflows and a probable increase in the MSCI index's weight. According to hdfc Bank's most recent shareholding pattern, foreign institutional investors' (FII) ownership in the bank has fallen below 55%. This is predicted to increase the weight of the company's shares in the MSCI index, which may encourage further passive inflows.
FII holdings in hdfc bank below 55%, according to Nuvama Alternative & Quantitative Research, may cause a large shift in the bank's weight, from 3.8% to 7.2% to 7.5%. Inflows of $3.2 billion to $4 billion might result from this. "The weight increase should result in approximately $3.3 billion in inflows, according to base case calculations," stated Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research.
The increase in hdfc Bank's weight in the MSCI index, according to brokerage company Jefferies, may act as a short-term stimulant for the stock market. It stated that robust deposit growth and rising NIMs should be the main forces in the medium run. Overwhelmed by significant passive fund inflows and a probable weight increase in the MSCI index, hdfc bank saw its share price rise.