HDFC Bank may see $1.8 billion inflows from MSCI weight increase, despite recent underperformance, with strong deposit and advance growth reported for Q2 2024.

HDFC Bank shares were in green on October 4, driven by expectations of significant foreign inflows related to the upcoming MSCI rejig. Market experts anticipate that the Mumbai-headquartered private lender could witness inflows worth $1.8 billion in November, as part of the second phase of the weight increase in the MSCI indices.

MSCI announced a two-tranche weight increase, contingent upon maintaining FPI headroom above 20 per cent. The August announcement initially disappointed the market, whi

In August, global index provider MSCI decided to increase the weight of HDFC Bank in two tranches - first in August, and then in November. This was contingent upon foreign investors' headroom remaining 20% at the least.