HDFC Bank Hits Record Daily Turnover of $4.6 Billion Amid MSCI Index Rejig

HDFC Bank witnessed its highest-ever daily turnover of $4.6 billion yesterday, on November 25, marking a milestone in trading activity. The previous record turnover for the private lender was $4.4 billion on August 30, 2024, according to the reports.

Unprecedented Trading Volumes

On the NSE alone, 21.4 crore shares of HDFC Bank were traded, with combined volumes across both bourses reaching 21.5 crore. This activity was nearly 11 times higher than the bank’s three-month average volume of 2 crore shares. The increased demand drove the stock to a record intraday high of Rs. 1,803.55, before settling at Rs. 1,785.60, up 2.3% from the previous close. Currently, the stock is trading at Rs. 1775.70. Delivery-based buying accounted for Rs.31,135 crore, with a delivery percentage of over 81%.

Impact of MSCI Index Adjustments

Monday’s surge coincided with the second tranche of HDFC Bank’s inclusion in the MSCI Global Standard Index. This adjustment followed an increase in the bank’s Foreign Inclusion Factor (FIF) from 0.37 to 0.56 during the first tranche in August 2024. Analysts estimate that the November rejig will bring $2.5 billion in foreign inflows into Indian equities, with HDFC Bank alone attracting $1.8 billion.

Market Dynamics

Foreign portfolio investors (FPIs) were net buyers, purchasing $1.2 billion worth of equities, while domestic institutional investors (DIIs) sold stocks worth $822 million. Among other stocks included in the MSCI index were BSE, Voltas, Kalyan Jewellers, Alkem Laboratories, and Oberoi Realty, all of which also saw increased trading volumes. For instance, BSE recorded a total turnover of Rs. 5,820 crore, with a delivery turnover of Rs. 2,928 crore.

The November MSCI index changes have boosted trading activity, with HDFC Bank emerging as a key beneficiary. This surge in volume and foreign inflows not only shows the bank’s growing prominence on global indices but also shows investor confidence in India’s equity market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.