At $4.6 billion, HDFC Bank clocks its highest ever daily turnover on Monday

The latest rejig in MSCI indexes has seen the turnover at HDFC Bank counter hitting a record $4.6 billion on Monday (November 25). Prior to this, such a massive turnover was recorded on August 30 of this year, which stood at $4.4 billion, according to data compiled from Bloomberg.

On Monday, as many as 21.4 crore shares of HDFC Bank changed hands on the NSE, taking the combined volumes on both bourses to 21.5 crore. That is about 11 times higher than the bank’s three-month average volume of two crore shares.

The heightened trading activity also took the bank’s stock to a record high of ₹1,803.55 on the NSE. However, the shares pared some of their gains to end the day at ₹1,785.60, up 2.3% from the previous close.

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Monday’s buying also 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.

Analysts are of the view that the November round of rejig would attract close to $2.5 billion in inflows to India’s equity market with HDFC Bank garnering the most. According to Nuvama Institutional Equities, HDFC Bank is likely to record an inflow of $1.8 billion in the second tranche of investments.

The changes to MSCI Indices also witnessed foreign portfolio investors (FPIs) turning into net buyers of Indian equities. According to provisional data on exchanges, overseas investors bought shares worth $1.2 billion on Monday, whereas domestic institutional investors net sold $822 million worth of stocks.

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The latest tweaks in stocks were a part of the quarterly change in MSCI Indexes (Morgan Stanley Capital International), which was announced earlier this year. Other stocks that have been included in the index are BSE, Voltas, Alkem Laboratories, Kalyan Jewellers and Oberoi Realty.

While BSE recorded a turnover of ₹5820 crore on Monday, the daily turnover on the NSE for Voltas and Kalyan Jewellers stood at ₹4580 crore and ₹3717 crore, respectively.

Currently, India’s weightage on the MSCI Global Standard index is pegged at 19.3%, with 151 stocks, while China has a weight of 27%. Further, the latest inclusion of five stocks with zero exclusions will take the total tally to 156 stocks for India in the MSCI Standard/EM Index.

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Additionally, there will be a net inclusion of 13 stocks in the Smallcap Index, bringing the country’s total stock count in the small-cap index to 525.