MSCI has announced that HDFC Bank’s weightage on the MSCI Global Standard Index will increase in two tranches, while the street had anticipated the same to take place in one go.
The first adjustment will take place post the current rejig. Nuvama Alternative and Quantitative Research believes that the current adjustment will result in inflows worth $1.8 billion for HDFC Bank. Details of the second tranche is expected to be communicated during the next rejig in November, provided the FPI headroom stays at least 20%.
HDFC Bank’s shares had hit a record high of ₹1,794 on July 3, when it had disclosed its shareholding pattern for the June quarter, which revealed that its holdings from Foreign Portfolio Investors (FPIs) had declined further compared to the March quarter.
Analysts had then anticipated that this will result in a potential weightage increase in the MSCI indices for HDFC Bank and lead to inflows up to $4 billion.
Since then, shares of HDFC Bank have declined 11% from record high levels as of closing on Monday, August 12.
This is a developing story.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
