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.
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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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