India's HDFC, HDFC Bank fall after Nuvama sees outflows on MSCI revision

Housing Development Finance

05/05/2023 05:07

** Shares of Housing Development Finance Corporation Ltd
 HDFC.NS  and HDFC Bank Ltd  HDBK.NS  tumble over 5% each
    ** HDFC and HDBK are the top losers in Nifty 50 index
 .NSEI  which is down 0.5%
    ** Slide after MSCI said that it will use adjustment factor
of 0.50 to compute the weightage of the merged entity
    ** HDFC Bank is subject to foreign ownership limit of 74%
and has current foreign room below 15%, says Nuvama Research
    ** Adds that the foreign room of the merged entity to be
above 15%
    ** The implementation would likely lead to outflow of $150
mln to $200 mln in the merger entity: Nuvama
    ** Current HDFC weightage in MSCI India is 6.74%; merged
entity likely to have slightly lower weight of above 6.5%:
Nuvama

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))