HDFC Bank shares maintained upward bias in the noon trades with the stock rising over 1 percent to trade at Rs 1,391 on BSE. However, according to reports, few traders made a killing in the HDFC Bank counter on Friday, sensing in advance the RBI notification that banned further purchase of shares by the FIIs in the scrip.
On Friday, HDFC Bank stock fell from the level of Rs 1,423 to the day's low of 1,368 between 1pm and 1.35 pm.
However, RBI notification, which banned further FII purchases in the HDFC Bank counter, came in at 1:39 pm.
Post the notification announcement, HDFC Bank stock started moving up and rose to Rs 1,382 in next half an hour's time.
According to Moneycontrol report, brokers attributed the rise in share price to short covering of positions by few informed traders.
"Most likely, informed traders who had sold just before the RBI notification becoming public, would have covered their positions," Moneycontrol report said.
However, custodians of FIIs have been informed by the stock exchanges that purchases made post 1.40 pm on Friday will not be settled.
On Friday, FIIs bought shares to the tune of Rs 8,000 crore while DIIs sold shares worth Rs 5,200 crore, with most of the deals taking place in the HDCC Bank scrip, according to market players.
"A day before on 16 February, the RBI had withdrawn the limit for purchase of HDFC Bank shares by FIIs when their shareholding had gone below the prescribed limit stipulated under the extant FDI Policy. This change happened after employees converted their ESOPs into shares. Experts had said this was nothing but a technical adjustment that would not last long," Moneycontrol said.
Published Date: Feb 20, 2017 02:48 pm | Updated Date: Feb 20, 2017 02:50 pm