Business Standard

HDFC stock hit by MSCI weight reduction

Related News

Shares of the country’s largest housing mortgage firm, Housing Development Finance Corp. (HDFC), declined 3.7 per cent on Wednesday after its weightage was reduced in MSCI’s (Morgan Stanley Capital International) indices. The lender’s weighting in the was reduced from 6.2 per cent to 3.2 per cent with effect from May 31.

An spokesperson, however, said the revision was done on incorrect consideration of foreign investment limits in the firm.

“MSCI may be considering foreign investment availability in HDFC at 74 per cent, which is incorrect. It should be 100 per cent. We are communicating this to Morgan Stanley,” said the spokesperson. The foreign direct investment (FDI) holding limit in HDFC is 100 per cent, but individual limits for the foreign institutional investor (FII) route is 74 per cent, the spokesperson said.

Currently, holding in HDFC is 59 per cent, while the holding is 15 per cent. HDFC shares, after falling as much as five per cent, closed 3.7 per cent lower at Rs 621 per share.

Shares of Suzlon Energy Ltd, which was removed from the MSCI index, also took a beating. After falling nearly six per cent, the stock settled two per cent lower at Rs 19.35.

MSCI also made three additions to its India index — Bank of Baroda, and Godrej Consumer Products. Shares of all three companies ended over one per cent higher on a day when the benchmark Bombay Stock Exchange index, the Sensex, fell 1.83 per cent.

Read more on:   
|
|
|
|
|
|
|

Read More

Agri Min proposes Rs 170/quintal hike in paddy MSP

In view of rising farm input costs, the Agriculture Ministry has proposed a Rs 170 per quintal increase in the minimum support price (MSP) of paddy ...

Quick Links

 

Market News

Snowman: Sound prospects, pricing not so attractive

Snowman Logistics, the cold chain subsidiary of listed parent Gateway Distriparks and country's largest player in the segment, is expanding ...

Govt okays share transfers before new Companies Act

Asks companies to carry out registrations even if the transfer was executed under the old regime

Stronger US economy pulls gold prices down

Outcome after minutes of US Fed meeting on Wednesday indicated improvement in economy, calls for early interest rate rise

Polyester yarn makers' margins under pressure

Raw material prices, especially in the domestic market, have been rising

UP sugar mills start laying off workers

66 mills have given suspension notices so far. There are 95 private and 23 cooperative sugar mills in Uttar Pradesh

Back to Top