Shares of HDFC Bank as of today: On the BSE, the stock increased 3.54% to reach a high of R 1,791.90. As of the end of June, Shares of HDFC Bank held an 11.95 percent weight in the Nifty. In early trading, the stock contributed to an increase in the index of 128.70 points, or 0.53%, to 24,252.55.
In anticipation of a rise in the stock’s MSCI weight, HDFC Bank shares increased by around 4% on Wednesday, bringing the private lender’s market capitalization (m-cap) to around Rs 38,000 crore.
As of June 2024, the FII shareholding in HDFC Bank is 54.8%, based on statistics from the BSE.
Shares of HDFC Bank
Analysts predict that HDFC Bank’s weighting in the MSCI Global Standard index might high in the August MSCI rejig, resulting in nearly $3 billion in passive inflows for the counter, as the lender disclosed its June quarter shareholding pattern.
At the BSE, the stock increased 3.54% to a high of R 1,791.90. As of the end of June, HDFC Bank held an 11.95 percent weight in the Nifty. The stock contributed to the index’s 128.70 point increase, or 0.53%, to 24,252.55.
“The stock (25.9% headroom against requirement of 25%) has been favored by the foreign stake in HDFC Bank, perhaps resulting in a weight doubling in the MSCI August 2024 review. At the moment, Shares of HDFC Bank makes up about 3.8% of the MSCI EM Index. According to Nuvama Alternative & Quantitative Research, this might increase to 7.2–7.5% after the revision, potentially bringing in $3.2 billion to $4 billion in inflows over the course of six days (base case).”
HDFC Bank share price rallied as FIIs holding in the bank below 55% could lead to a significant weight change from 3.8% to 7.2% to 7.5%, potentially triggering inflows of $3.2 billion to $4 billion.
The current methodology assumes that the increment occurs entirely at once. Only on August 13th will MSCI reveal any exceptions.
“As we have stated numerous times, we anticipate that the stock will increase in value and break the Rs 1,900 barrier before the formal announcement on August 13 (IST). Domestic funds should hold HDFCB because they purchased it at a fair price in an expensive market, according to Nuvama.
Based on fundamentals, Nuvama projects less than 2% quarterly increase in loans and deposits for HDFC Bank in Q1. It projects a 50,000–55,000 crore increase in deposits and a 90% increase in LDR.
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With the increase in lending rates in Q4FY24 and the shift in the loan mix, we are factoring in stable NIM. However, considering that the cost of new deposits has gone up and repricing of e-HDFC borrowings is still not producing any cost benefit, NIM is still an important variable to watch. In Q1FY25, Rs 15,600 crore worth of e-HDFC borrowings, primarily CPs, matured. Furthermore, there will be a typical e-HDFC deposit attrition,” it stated.
A FII headroom of 25% is required for FII shareholdings less than 55%, which pushes the half-factor to full.
“The delivery-based purchasing that has been observed in shares of HDFC Bank stock over the past few days has the potential to continue for a few more days, which would push the stock higher and provide it additional durability.
Active funds and ETFs will purchase more delivery-based investments as HDFC Bank’s weight in the Nifty grows. Other highly weighted Nifty stocks like RIL, TCS, Infosys, and ICICI Bank may see a slight decline, according to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The increase in shares of HDFC Bank also helped the Bank Nifty index, which surged by 1.85%, or about 1,000 points, to trade above the 53,000 mark.
Following an extended quiet period, the shares of HDFC Bank increased by about 20% over the last three months, with the stock rising by more than 12% in a single month.
Shares of HDFC Bank were up 2.28% at ₹1,770.00 per share on the BSE at 9:30 am.
Disclaimer: Business Today does not offer investment advice; the news it covers about the stock market is provided solely for informative purposes. It is recommended that readers get advice from a licensed financial advisor just before making any investing decisions. (Shares of HDFC Bank)