HDFC Bank Drags Lower After Hitting Record High Of Rs.2170

Shares of HDFC Bank in early morning trade today hit a record-high of Rs. 2170 per share on the BSE but soon pared its early gains by as much as 5% to record day's low price of Rs. 2058.8.

On the NSE, the stock scaled to a intra- day high of Rs. 2157 and was later trading with losses.

During the previous week, the stock of HDFC Bank outperformed the indices in the anticipation of high demand for the stock when the FPI buying window opens. The stock during the week surged as much as 5% while the BSE Sensex made only 0.87% gains during the same week.

As per the CDSL and NSDL data that are both responsible for overseeing FPI holding pattern in Indian listed firms, overseas investors can up their stake in the highest valued bank by 1.68 percent or 4.3 crore shares valued at close to $1.4 billion. As of now, global funds hold 72.3 per cent stake in the private sector lender just below the specified cap of 74%.

The buying by foreign portfolio investor in the stock has been permitted after the depositories put a red flag signaling companies wherein the aggregated FPI limit has reduced below the permissible limit.

Other stocks, in which there was found room for FII buying include IndusInd Bank and Sunteck Realty.

At the time of reporting, the stock of HDFC Bank was trading lower by 2.16% at Rs. 2,064 on the BSE.

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