Shares of HDFC Bank have taken a knock following the restriction placed by the RBI on fresh overseas investors’ buying in the stock as their holding has reached the maximum limit.
However, the stock did not encounter any panic selling and has in fact pulled back from the day’s low for the scrip.
In its notification, the Reserve Bank of India said that since the foreign share holding through foreign institutional investors (FIIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO)/Foreign Direct Investment (FDI)/Asset Development Reserve (ADR)/ Global Depository Receipt (GDR) in HDFC Bank Ltd has exceeded the overall limit of 49 per cent of its equity, “no further purchases of share of this bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIO/FDI/ADR/GDRs”.
The RBI action dampened the investor sentiment in the stock leading to the stock paring some of its gains. The stock, which opened weak at Rs 675.65 in the NSE compared to its previous close of Rs 684.35, dipped to a low of Rs 662.10 before pulling back to Rs 668.85. The trading volume was about 19.23 lakh shares.