HDFC Bank shares lose flavour as FPIs preferring other private lenders

Once most popular among foreign portfolio investors, stock is trading at a discount to peers in private space

HDFC Bank, once the most popular stock among foreign investors, seems to be losing ground. 

The stock had opened for fresh foreign portfolio investor (FPI) buying in June this year, as allotment of employee share options (Esops) created a 140 basis points (bps) headroom in the share.

Three months later, there is still a 90 bps headroom for FPIs in the stock. This comes despite bulk allotment to some FPIs during the recently concluded $2.4-billion qualified institutional placement (QIP).

Analysts said FPIs are preferring other private lender stocks such as IndusInd Bank and even smaller lenders such as Bandhan Bank,