HDFC: HDFC twins slide 6%, drag Sensex down 650 points – Times of India

Mumbai: The financial services giant HDFC And HDFC bank, which are set to merge this year, crashed nearly 6% on Friday. Together, the two contributed about 650 points to the Sensex’s fall of 695 points.
A brokerage firm report estimated that after the merger, foreign funds may sell around $150-200 million worth of merged stock to comply with the index adjustments. MSCI, Consequently, some investors may have sold shares of HDFC and HDFC Bank before the adjustment as such a decision would lead to bunch-up selling by index funds and ETFmarket players said.
The fall in the market came in the face of a strong Indian market over the past two weeks despite foreign fund buying and weak global cues.
On Friday, HDFC Bank closed down 5.9% while HDFC Bank was down 5.6%. , Wherein, I got to see the purchase ICICI Bank, ITC and some other stocks that are constituents of the MSCI index. Global Index Provider (MSCI) also changed a rule to include the merged entity in its Large Cap Global Index and said it will monitor the stock after the merger.
CDSL data showed that in Friday’s session, foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 778 crore, taking the current month’s net inflows into stocks to over Rs 11,000 crore. Domestic funds, however, were net sellers to the tune of Rs 2,199 crore during the day, BSE data showed.