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.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.