By Vineet Kumar 
HDFC Bank Hits All-Time High Above Rs 1,800 as MSCI Rejig Spurs Trading Frenzy
HDFC Bank shares surged to an all-time high of ₹1,803.55 on November 25, driven by a massive spike in trading volumes owing to the MSCI November rebalancing. The stock ultimately closed at ₹1,785.6, reflecting a 2.3% gain over the previous session.
More than 21.5 crore shares of HDFC Bank were exchanged on the NSE and BSE combined—an astonishing 8.6 times its 20-day average volume of 2.5 crore shares. A significant portion of this activity occurred in the last 30 minutes of trading, where 19 crore shares changed hands post-3:00 PM.
What’s Behind the Volume Surge?
The extraordinary trading activity was tied to MSCI’s quarterly index rebalancing, which came into effect today. Indian equities, as part of this reshuffle, are projected to receive net inflows of approximately $2.5 billion from Foreign Institutional Investors (FIIs).
HDFC Bank, in particular, was a key beneficiary due to an increase in its MSCI weightage. This adjustment, split into two phases, has been a catalyst for passive inflows. Today marked the final tranche, following an initial adjustment in August 2024 when the bank’s Foreign Inclusion Factor (FIF) was partially raised from 0.37 to 0.56.
The August rejig alone is estimated to have drawn $1.8 billion (around ₹15,000 crore) in foreign inflows. The November adjustment further enhanced HDFC Bank’s weightage, bringing in an additional $1.88 billion in passive inflows, contingent on its FPI ownership headroom remaining above the critical 20% mark.
Strong Performance but a Mixed Picture
Over the past year, HDFC Bank’s stock has risen by 16%, which, while impressive, lags behind the Nifty index’s 22% gain during the same period. Despite this underperformance relative to the benchmark, the bank boasts a staggering market capitalization of ₹13.63 lakh crore.
The bank’s inclusion at full market-cap weight in the MSCI indices reflects its solid fundamentals and consistent FPI ownership above key thresholds. This development underscores its importance as a cornerstone of India’s financial ecosystem, attracting global investors eager to gain exposure to India’s growth story.
For seasoned traders and investors, today’s activity serves as a testament to how strategic events like MSCI rebalancing can create unprecedented trading opportunities, reinforcing HDFC Bank’s position as a favorite among institutional players.
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