The largest private lender in India, HDFC Bank Ltd., saw its shares soar to a record high on Monday, November 25, when the second tranche of the MSCI revisions entered the market. Monday’s high of ₹1,803 was higher than the previous high of ₹1,794 reached on July 3, the day the lender revealed its June quarter shareholding pattern, making it eligible for a weightage increase in the MSCI Global Standards Index.
All industries saw a wide market surge, although banks and financials were most affected. The S&P BSE Sensex closed at 80,109.85, up 993 points or 1.25%, while the wider Nifty index closed at 24,221.90, up 315 points or 1.32%. In just two sessions, the Sensex has increased by almost 3,000 points.
Rebalancing MSCI
The MSCI rebalancing, which went into force today, is another factor driving the stock boom. According to analysts, the Indian market would experience inflows of roughly $2.5 billion, of which HDFC Bank is anticipated to receive a sizable portion. Foreign institutional investors (FIIs) are expected to invest an estimated $1.9 billion in HDFC Bank as its weighting in the MSCI Emerging Markets (EM) index rises. The second phase of a planned strategy to raise the weightage is this modification. This strategy was presented at the August 2024 MSCI review.
HDFC Stock Price
On the BSE, the stock rose 3.53 percent to ₹1,740.55 per share. It surged 3.42 percent to ₹1,739.50 each on the NSE. During morning trading, the company’s market value increased by ₹46,433.29 crore to ₹13,29,281.58 crore. Among the BSE Sensex and NSE Nifty companies, the stock saw the largest increase. On a consolidated basis, HDFC Bank’s September quarter net profit increased by 6% to ₹17,825.91 crore on Saturday. The largest private sector lender’s post-tax net increased to ₹16,820.97 crore during the reporting period compared to ₹15,976.11 crore during the same time last year.
