HDFC Bank Shares Hit 52-Week High On Increased Demand Ahead of FII Selling

Written By:
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    HDFC bank share price was at its 52-week high at Rs 2,126.45 after a 4.48 percent hike in early trade. The bank experienced an overnight surge as much as 8.6 percent in the sale of its ADR (American depositary receipt) shares on New York Stock Exchange (NYSE) ahead of its FII selling.

    HDFC Bank Shares Hit 52-Week High On Increased Demand Ahead of FII Selling

    The SEBI (Securities and Exchange Board of India) is closing FII to FII (Foreign Institutional Investor) trading from 1 July 2018.

    Meanwhile, the country's biggest private sector lender will be opening its shares for FII buying tomorrow, June 1. HDFC Bank, known for often utilizing its FII investment limits usually to the maximum at 75 percent, issued fresh stocks on Wednesday through ESOPs. This gives FIIs a fresh chance.

    After SEBI's decision to scrap FII to FII trading (6 lakh series) decision comes to picture, "this will be last opportunity for FIIs to buy HDFC Bank, we think scrapping of special FII window will increase the quantum of buying that will come on June 1," said global investment banking group Macquarie in a statement to its investor.

    It also said that buying from foreign investor could exceed $1 billion. The increased buying could take the stock price to higher levels.

    HDFC Bank has been popular among overseas investors and it was going to open a window for FII on May 18. The date was however postponed to June 1 by SEBI as the regulator will start monitoring foreign investment in Indian companies will its new system from June 1. The depositories will be allotting shares to FII on a pro-rata basis this time to keep a check on the limit.

    Read more about: hdfc bank
    Story first published: Thursday, May 31, 2018, 12:55 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more