The long-awaited weightage increase of HDFC Bank will be happening in the month of August, however MSCI has made an exception by raising with lower adjustment factor, leading to an inflow of $1.8 billion, equivalent to 93 million shares, with an impact of about 4.5 days in August Rejig.
The remaining float adjustment (second and final tranche) is expected to be done in the November 2024 rejig, provided the foreign room remains at least 20%.
The timeline of the second tranche has not yet been communicated.
Currently, HDFC Bank’s weight in the MSCI EM Index is around 3.8%. Post-rejig, this could jump to 7.2%-7.5%, potentially bringing in $3.2 billion to $4 billion inflows over 6 days, according to a report by Nuvama Alternative & Quantitative Research.
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