Bandhan Bank surges 20% on likely MSCI Index entry, Gruh Finance up 20% as well

Shares of Bandhan Bank gained 20 percent intraday on October 11 amid reports that the stock could be added to the MSCI Index in the coming week. Gruh Finance, which merged with the private sector lender, also climbed 20 percent.

Bandhan Bank could be added to the MSCI Index from October 16 following its acquisition of Gruh Finance.

"We expect the stock to be included in the index with the weight of approximately 50 basis points, which could bring flow of $180 million,” Motilal Oswal said in its note.

The National Company Law Tribunal had approved the merger in September and the record date was fixed as October 17 for determining the shareholders of Gruh Finance who will be entitled to equity shares of the bank.