HDFC Bank Shares Plunge 3.50%, Mcap Drops Rs 42,206 Cr

New Delhi, Aug 13 (PTI) Shares of HDFC Bank faced selling pressure on Tuesday and declined nearly 3.50 per cent amid profit-taking, wiping out Rs 42,205.92 crore from its market valuation.

The stock declined amid likely lower-than-expected passive fund inflows in the recent MSCI index rejig.

The blue-chip stock went lower by 3.46 per cent to settle at Rs 1,603.60 on the BSE. During the day, it slumped 3.60 per cent to Rs 1,601.20.

At the NSE, it declined 3.42 per cent to Rs 1,603.20.

"HDFC Bank declined due to lower-than-expected passive fund inflows in the recent MSCI index rejig," said Vinod Nair, Head of Research, Geojit Financial Services.

The company's market capitalisation (mcap) eroded by Rs 42,205.92 crore to Rs 12,21,541.23 crore.

The stock was the biggest laggard among the 30-share BSE Sensex firms.

Decline in the blue-chip stock was instrumental in dragging the benchmark indices lower.

The 30-share BSE Sensex tumbled 692.89 points or 0.87 per cent to settle at 78,956.03. The NSE Nifty slumped 208 points or 0.85 per cent to 24,139.

"The MSCI rebalancing is unfolding as anticipated, leading to mixed reactions among stocks—some are seeing gains, while others are experiencing profit-booking. A key focus is HDFC Bank, which will see an increased weight, though with a lower adjustment factor. Consequently, the inflows will occur in two tranches, amounting to over USD 1.8 billion.

"HDFC Bank is currently under pressure after outperforming the market in the days leading up to the MSCI rebalancing, driven by expectations despite its weak earnings. The stock is now facing profit-booking as investors react to the phased inflows," Santosh Meena, Head of Research, Swastika Investmart Ltd, said.

Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd, said, "The weightage of HDFC Bank, the biggest private lender in India, would rise in its MSCI Global Standard Index over the course of two tranches. Although the street had expected the same thing to happen all at once.