AgenciesAhead of a possible increase in the weightage of HDFC Bank in the MSCI EM Index, Quant Mutual Fund has increased its holdings in this stock in its June portfolio making it among the top two holdings in most of the Quant schemes.
At present, the weight of HDFC Bank in the MSCI EM Index is around 3.8% and is likely to move up to around 7.2%-7.5%. The shares of HDFC Bank surged by around 3% on Wednesday to hit a fresh 52-week high of Rs 1,791 on BSE after the news came out.
According to the June factsheet released by the fund house, HDFC Bank is around 7.27% to NAV in Quant Small Cap Fund. In Quant Mid Cap Fund, HDFC Bank is 9.28% to NAV whereas as in Quant Active Fund it is 6.62% to NAV. In Quant Flexi Cap Fund, HDFC Bank is 10.44% to NAV.
The asset under management of Quant Mutual Fund has increased from Rs 166 crore in December 2019 to Rs 90,500 crore in June 2024.
A possible doubling of HDFC Bank's weightage in the global index can bring in $3.2 billion-4 billion of FII flows and the stock can cross Rs 1,900-mark, Nuvama said.
HDFC Bank's June quarter shareholding pattern showed a 50 bps decline in foreign institutional investors' (FIIs) stake, below the 55% mark. The change in weightage can potentially bring in $3.2 billion to $4 billion in inflows over 6 days in the base case scenario, according to Nuvama Alternative & Quantitative Research.
"We expect the stock to gain momentum (cross Rs 1,900) until the official announcement on August 13 (IST). Domestic funds, having bought HDFC Bank because of its reasonable valuation amidst an expensive market, should continue to hold," Nuvama said.
Analysts say the delivery based buying in the stock witnessed in the last many days has the potential to continue for a few more days pushing the stock further up and imparting resilience to it.
"As the weightage of HDFC Bank in Nifty increases there will be more delivery based buying by ETFs and also active funds. There can be a marginal negative impact on other high weightage stocks in the Nifty like RIL, TCS, Infosys and ICICI Bank," Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said.
At present, the weight of HDFC Bank in the MSCI EM Index is around 3.8% and is likely to move up to around 7.2%-7.5%. The shares of HDFC Bank surged by around 3% on Wednesday to hit a fresh 52-week high of Rs 1,791 on BSE after the news came out.
According to the June factsheet released by the fund house, HDFC Bank is around 7.27% to NAV in Quant Small Cap Fund. In Quant Mid Cap Fund, HDFC Bank is 9.28% to NAV whereas as in Quant Active Fund it is 6.62% to NAV. In Quant Flexi Cap Fund, HDFC Bank is 10.44% to NAV.
The asset under management of Quant Mutual Fund has increased from Rs 166 crore in December 2019 to Rs 90,500 crore in June 2024.
A possible doubling of HDFC Bank's weightage in the global index can bring in $3.2 billion-4 billion of FII flows and the stock can cross Rs 1,900-mark, Nuvama said.
HDFC Bank's June quarter shareholding pattern showed a 50 bps decline in foreign institutional investors' (FIIs) stake, below the 55% mark. The change in weightage can potentially bring in $3.2 billion to $4 billion in inflows over 6 days in the base case scenario, according to Nuvama Alternative & Quantitative Research.
"We expect the stock to gain momentum (cross Rs 1,900) until the official announcement on August 13 (IST). Domestic funds, having bought HDFC Bank because of its reasonable valuation amidst an expensive market, should continue to hold," Nuvama said.
Analysts say the delivery based buying in the stock witnessed in the last many days has the potential to continue for a few more days pushing the stock further up and imparting resilience to it.
"As the weightage of HDFC Bank in Nifty increases there will be more delivery based buying by ETFs and also active funds. There can be a marginal negative impact on other high weightage stocks in the Nifty like RIL, TCS, Infosys and ICICI Bank," Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said.
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