How does the recent HDFC Bank shareholding pattern impact MSCI adjustments?

HDFC Bank Ltd ., India's largest private sector lender released its shareholding pattern for the September quarter. NSE As per the recent shareholding pattern, the FII headroom indicates that the second tranche of the MSCI adjustments is likely to take place in November.

In August this year, MSCI, the global index provider, had announced that HDFC Bank's weightage on the MSCI global standard index will increase in two tranches. The street though, was anticipating the same to happen in one go. MSCI will maintain HDFC Bank in its indices with an increase in the Foreign Inclusion Factor (FIF) from 0.

37 to 0.56 at the close of August 30, 2024. The first adjustment took place post the rejig that took place in August, leading to an inflow of close to $2 billion.

HDFC Bank's most recent shareholding shows foreign ownership limit at 55.51% from 54.83% at the end of the June quarter.

The next MSCI adjustments are likely to take place in November. Nuvama Alternative & Quantitative Research is anticipating further $1.8 billion worth of inflows for HDFC Bank once the second tranche of the MSCI adjustments kicks in.

Here are some of the other highlights from HDFC Bank's most recent shareholding: Mutual Funds have reduced stake in a marginal fashion to 24.53% from 24.83% in June.

LIC, India's largest insurance company, has marginally increased stake to 5.37% from 5.25% in June.

Government of Singapore too has increased its stake to 2.41% from 2.1% in June.

The number of small shareholders .