Important news from HDFC BANK, keep an eye on stock trading today

Shares of HDFC Bank may see action today on Wednesday. On Tuesday, the bank released the shareholding pattern for the June quarter. According to which the holding of foreign portfolio investors in the bank has come down from 55 percent.

HDFC BANK's ADR rose by over 2 percent

This level is below MSCI's cutoff. If FPI holdings fall below this level, the bank's weightage in the MSCI index may increase and it is estimated that the bank may see inflows of $3-4 billion. HDFC BANK's ADR rose by more than 2 percent following this signal. It is now expected that HDFC Bank stock may also react to these cues in Wednesday's trading.

According to data released on the BSE, the holding of foreign portfolio investors fell to 54.83 percent from 55.54 percent in the June quarter on a quarter-on-quarter basis. Brokerage firm BoFA Securities wrote in a note that if FPIs' shareholding in HDFC Bank falls, it will meet MSCI headship norms, leading to MSCI funds holding Rs. Up to 34 thousand crores can be purchased.

Over 10 percent growth in stock in one month

With this, the FII headroom in HDFC Bank has increased to 25 percent. FII headroom is the percentage of shares in a company available to foreign investors. Shares of HDFC Bank rose 1.5 percent to close at 1730 in Wednesday's trading. The stock touched the level of 1734 during the trading. A month ago the stock was at the level of 1572, which means that the stock has registered a growth of more than 10 percent in a month.

The bank's weightage in the MSCI index is expected to increase

HDFC Bank released the shareholding pattern on Tuesday. According to data disclosed on BSE, FII's shareholding has fallen below MSCI's cutoff. It is now believed that the bank's weightage in the share MSCI index will increase.

What is the case- HDFC Bank's shareholding was long awaited. She has arrived now. In simple words, whose share increased and how much decreased. The bank has given this information to the exchange. According to the released data – the share of FIIs has come down to below 55 percent.

FII's head room has increased more than before

In simple words, there will be more investment opportunities. FII's shareholding has fallen below MSCI's cutoff.

The weightage of the bank will increase as the shareholding decreases. Due to increase in weightage, inflow of $300-400Cr is expected. FII's shareholding in the bank has come down to 54.83%.

Looking at the performance of AHDFC Bank shares, the stock has gained 13 percent in one month, 17 percent in three months, 2 percent in one year.