HDFC twins up 6% on inclusion of merged entity in MSCI index

As per reports, MSCI has done away with the minimum foreign room requirement.

HDFC Ltd up 5.87% 2,652 each, while HDFC Bank rose 5.5% 1,609.

At the end of September quarter, HDFC held 67.76 per cent of the foreign investor’s stake while HDFC Bank held 32.15 per cent of the foreign shareholding.

After the announcement of the merger of HDFC Ltd with HDFC Bank in April, both the stocks had declined on concerns that the latter might be kept out of the MSCI index. HDFC dropped from around 52-week low from 2,700 2,026 on June 17. HDFC Bank dropped 52-week low from 1,600 1,271.6.

The merger is expected to be completed by April-May 2023.

HDFC has a weightage of 5.62% and HDFC Bank has a weightage of 8.26% on the Nifty index.

At the time of writing, the distribution as a percentage of business volume for HDFC stood at 60.4%, while that of HDFC Bank was 56.22%.

Meanwhile, HDFC Bank reported a 20% rise in its net profit for the September quarter 106 billion, while net interest income increased to 210 billion. Parent HDFC Ltd reports 18% growth in net profit 37.8 billion, up 12.9% year on year with net interest income 46.4 billion.