HDFC Bank share price climbed above Rs 1,800 to hit a fresh all-time high on 25 November, as trading volumes saw an extraordinary surge with the MSCI November rebalancing coming into effect. More than 21.5 crore HDFC Bank shares were traded across NSE and BSE — nearly 8.6 times its 20-day moving average volume of 2.5 crore shares. The bulk of the trading activity occurred in the final half-hour of the session, with 19 crore shares sold after 3:00 pm.
The share price of HDFC Bank climbed above Rs 1,800 during the trading session, hitting an all-time high of Rs 1,803.55. It settled at Rs 1,785.6, up 2.3 percent from the previous close.
The stock has gained over 16 percent in the past year, though it has underperformed the benchmark Nifty index, which is up 22 percent during the same period. HDFC Bank's current market capitalisation stands at Rs 13.63 lakh crore.
Today’s activity comes as part of the Morgan Stanley Capital International (MSCI) indices' quarterly rebalancing, with Indian equities expected to see net inflows of $2.5 billion from foreign institutional investors (FIIs).
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HDFC Bank, in particular, was in focus due to the anticipated increase in its weightage, which was expected to bring in an estimated $1.88 billion of passive inflows. MSCI had announced this weightage adjustment earlier this year, implementing it in two stages.
Today’s activity marks the second and final tranche of HDFC Bank's inclusion in MSCI indices this year, following the first adjustment in August 2024, when the Foreign Inclusion Factor (FIF) for the stock was partially raised from 0.37 to 0.56.
The August rejig alone was estimated to have drawn in $1.8 billion (approximately Rs 15,000 crore) in foreign inflows, as HDFC Bank met the required foreign ownership thresholds. Analysts had projected that the final adjustment in November would unlock further inflows, contingent on the bank maintaining adequate FPI headroom above the critical 20 percent threshold.
HDFC Bank's foreign ownership, as of the latest data, remains above the crucial thresholds required for MSCI inclusion at full market-cap weight.
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