HDFC Bank's Drop In Q1 FII Holding Paves Way For Higher MSCI Weight
HDFC Bank Ltd. has reported a reduction in foreign institutional investors' shareholding to 54.83% in the June 2024 quarter, down from 55.54% in the previous quarter. This change aligns with the MSCI Index's requirement of keeping FII shareholding below 55.5%.
The decrease in FII shareholding will likely trigger a significant increase in HDFC Bank's weight in the MSCI Index, according to the research firm Nuvama.
At the time of merger of HDFC and HDFC Bank, MSCI had assigned a lower weight for the merged entity. This was because the headroom for foreign investors was close to 15%.
Currently, HDFC Bank's weight stands at 3.95%, but with the shareholding drop, it could rise to between 7.2% and 7.5%, Nuvama said in a note, adding that the adjustment is expected to result in substantial inflows, estimated between $3.2 billion and $4 billion.
The MSCI Index rebalancing is scheduled for August, with the official announcement set for Aug. 13 and the flows anticipated on Aug. 30.
Shares of HDFC Bank closed 1.3% higher at Rs 1,728 apiece. That is compared with a 0.07% fall in the country's benchmark NSE Nifty 50.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
