The stock of private sector lender had hit a high of Rs 2,157 on the NSE in intra-day trade earlier today. On the BSE, the stock hit an intra-day low of Rs 2,059, falling 5% from its new high of Rs 2,170 recorded in early morning trade today.
HDFC Bank had outperformed the market by surging 5% in last week on expectation of huge demand for the bank stock when the window opens for foreign portfolio investors (FII) buying. On comparison, the S&P BSE Sensex was up 0.87% during the week.
According to Business Standard report, the allotment of employee stock options (ESOPs) has created 143 basis points (bps) headroom for FPIs in HDFC Bank. This has created a last minute rush among FIIs wanting to buy HDFC Bank shares.
According to information on the websites of National Securities Depository (NSDL) and Central Depository Services (CDSL), both responsible for monitoring of FPI shareholding in listed firms, room has been created to buy 43.6 million shares (1.68% stake) in the country’s highest valued bank has been created.
On Friday, for the first time, both NSDL and CDSL put out a so-called ‘red flag’ list of companies where the aggregate FPI investment limit had dropped below the permissible cap. Beside HDFC Bank, IndusInd Bank (2.1% room available) and Sunteck Realty (1.25%) are among the other stocks where new FPI buying will be permitted, the Business Standard reported. CLICK HERE TO READ FULL REPORT
At 10:36 am; the HDFC Bank was trading 1.4% lower at Rs 2,082 on the NSE, as compared to 0.04% rise in the Nifty 50 index.