HDFC twins’ mcap falls by Rs. 86k crore
Shares of HDFC Bank and HDFC fell sharply on Friday amid reports that the merged entity could see significant fund outflow.
HDFC Bank
New Delhi: Shares of HDFC Bank and HDFC fell sharply on Friday amid reports that the merged entity could see significant fund outflow. The market valuation of HDFC Bank fell by Rs 56,228.1 crore to Rs9,07,505.07 crore and that of HDFC declined by Rs29,572.72 crore to Rs 4,95,541.41 crore. The combined mcap fell by Rs85,800.82 crore.
Aditya Gaggar, Director, Progressive Shares, said: “The MSCI intends to add HDFC Bank to the large-cap segment of MSCI Global Standard Indexes, with an adjustment factor of 0.5 vs the market expectation of 1, which would mean that it would see no incremental inflows. Rather, it may result in outflows of $150-200 million. It would have resulted in an incremental inflow of around $3 billion had the adjustment factor been at 1,” Gaggar said.
The stock of HDFC Bank tumbled 5.90 per cent to settle at Rs 1,625.35 on the BSE. During the day, it fell six per cent to Rs 1,622. HDFC shares declined by 5.63 per cent to end at Rs 2,701.15. During the day, the stock plunged 5.84 per cent to Rs 2,695.
