Know that due to which news related to HDFC and HDFC Bank, there was a huge fall in the stock market!

HDFC-HDFC Bank Share Crash: The Indian stock market has closed with a big fall on Friday. And HDFC and HDFC Bank shares have played the biggest role in bringing down the market. Both the heavyweights of the market closed with a fall of more than 5 per cent. Due to this huge fall in the stock of HDFC and HDFC Bank, Bank Nifty has closed by falling more than 1000 points in a single session. But the question arises that what happened in the stocks that closed on record high on Thursday, that the very next day the investors of both the stocks were disappointed.

The process of merger of HDFC and HDFC Bank is progressing rapidly. Meanwhile, news came that after the merger of both the financial institutions, MSCI will include the new entity HDFC Bank in the largecap segment of MSCI Global Standard index with an adjustment factor of 0.5 per cent. If this happens, there may be a sell-off in the stock of HDFC Bank and withdrawal of investment around $ 150 to 200 million can be seen. The market was expected to be included in the index with an adjustment factor of 1 per cent. Had this happened, HDFC Bank’s stock would have seen new investment of up to $ 3 billion.

At present, HDFC has a weightage of 6.74 per cent in the MSCI India index. After the merger of HDFC and HDFC Bank, the new company that will be formed, its weight in the index will be reduced to 6.5 percent. Foreign investors invest in that stock based on the weightage of the company in the MSCI Global Standards Index.

After this news, HDFC Bank’s stock closed at Rs 1625, down 5.90 per cent, while HDFC’s stock closed at Rs 2701, down 5.63 per cent. HDFC Bank had touched a lifetime of Rs 1734 only yesterday but after today’s fall the market cap has come down to Rs 9.07 lakh crore. While the market cap of HDFC has been reduced to Rs 4.95 lakh crore.

Let us tell you that HDFC Group’s housing finance company HDFC and HDFC Bank are going to merge with each other. After this merger, HDFC Bank will become the second largest listed company in the country.

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