HDFC Bank Share Price Today Live Updates: HDFC Bank stock surges 3% in early trade

Mumbai: On Wednesday, HDFC Bank’s shares increased by almost 3%, placing it among the top gainers in the Nifty 50 index. By 11:26 am, the stock had increased 3.07% to ₹1,783.65 on the NSE.

Brokerage Insights: HDFC Bank Jefferies:

Suggestion: Purchase

Goal Cost: ₹1,880

Notes: According to Jefferies, foreign ownership decreased from 55.54% in March 2024 to 54.83% in June 2024. During the August review, they emphasized how HDFC Bank’s foreign inclusion factor (FIF) would increase from 50% to 100%, which would greatly increase the bank’s weight in the MSCI EM Index. It is anticipated that this modification will act as a favorable short-term catalyst for the stock.

UBS about HDFC Bank:

Suggestion: Purchase

Goal Cost: ₹1,900

Market Capitalization and Weight of the MSCI Index:

The market capitalization of HDFC Bank is ₹13.54 lakh crore, according to the most recent NSE data. The bank is qualified for a notable increase in weight in the MSCI EM Index due to its increased foreign room, which was 25.9% for the quarter ended in June. At the moment, HDFC Bank makes up roughly 3.8% of the MSCI EM Index. According to projections by Nuvama Alternative & Quantitative Research, this would increase to 7.2–7.5% after the revision, possibly drawing $3.2-4 billion in inflows over the course of six days.

Performance of the Stock and Forecasts: HDFC Bank shares reached a new 52-week high of ₹1,791.90 on the BSE on Wednesday. Investor optimism has been bolstered by the expected increase in the weightage of the MSCI EM Index. Nuvama analysts predict that before the official MSCI announcement on August 13, 2024, the stock will rise beyond ₹1,900. They advise domestic funds to keep investing in HDFC Bank shares because of the company’s favorable value in an otherwise pricey market.

Impact on India’s Weight in the MSCI EM Index: India’s overall weight in the index could increase from 19.2% to over 20% as a result of the prospective doubling of HDFC Bank’s weightage. This change highlights how important Indian stocks are becoming on the international scene.