HDFC Bank to Gain Two Tranches in MSCI Global Standard Index Weightage
MSCI, the global index aggregator, has decided to increase HDFC Bank's weightage in two tranches, which could potentially result in a substantial influx of funds.
HDFC Bank to Gain Two Tranches in MSCI Global Standard Index Weightage
MSCI has announced that HDFC Bank's weightage in MSCI indices will rise in two phases, with the first phase set for August 30, 2024, and the second one in November 2024.
Nuvama, a financial firm, anticipates that the first phase will bring a fund inflow of $1.8 billion. The adjustment for the remaining float (second and final phase) will be officially communicated during the November 2024 rejig, provided that the foreign room remains at least 20% without any errors.
Due to the August reshuffle, on Tuesday, HDFC Bank's shares initially dropped by 3.18% to ₹1,607.25 but rebounded to ₹1,616 around noon.
Furthermore, the recent MSCI reshuffle has bolstered investor confidence, prompting HDFC Bank's stock price to reach a record high on the NSE.
Taking everything into consideration, MSCI has stated that it will monitor HDFC Bank's foreign room closely and will inform the bank of any significant changes.
