Shares of HDFC Bank and HDFC slumped down over 5% today. Both the stocks hit 52-week highs yesterday after HDFC’s earnings blew past street estimates.
What Happened: Global index provider Morgan Stanley Capital International (MSCI) told its clients that it intends to add the merged entity HDFC Bank to the large-cap segment of MSCI Global Standard Indexes, with an adjustment factor of 0.5. This adjustment is lower than street estimates of 1.
The revision could results in a outflow of $150 million as against an inflow of $3 billion that was earlier expected. Now experts are speculating that other index providers will also follow suit.
The news seems to have dampened the sentiment around the stocks. HDFC shares slumped over 6% to hit an intraday low of ₹1,626.20. HDFC share price tanked close to 6% to hit an intraday low of ₹2,709.
The slump comes as both the stocks had hit 52-week highs on Thursday. HDFC share price surged close to 3% to hit a new 52-week high of ₹2,867. HDFC Bank share price went up 2.5% to hit a new 52-week high of ₹1,734.45.
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Price Action: HDFC share price was down 5.14% to trade at ₹2,715. HDFC Bank shares were down 5.28% to trade at 1,636.50.
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