HDFC Bank, HDFC shares plunge up to 6%, lose Rs 64,000 crore in m-cap today

HDFC entity could see $150-200 million in outflows, as the index aggregator MSCI in an update

shares of HDFC Bank plunged 5.56 per cent to hit a low of Rs 1,631 on BSE. Shares of HDFC declined 4.97 per cent to Rs 2,720.

The market capitalisation of the two companies fell Rs 63,870 crore within first few minutes of trade.

HDFC is a part of a global index with a weight of 6.74 per cent. While HDFC Bank is not a part of the index, it was expected

he combined entity to see net inflows of $3 billion on account of getting a full adjustment factor of 1x

That said, as per the MSCI update, the adjustment factor stands at 0.5x. As a result, the combined entity

would have a weight of 6.5 per cent in the index against the current weight of HDFC at 6.74 per cent.

DFC Bank at a scheduled index review following the completion of the transaction and in accordance with the section of MSCI GIMI methodology.