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Shares of HDFC Bank Ltd rose as much as 3.8 per cent to an all-time high of Rs 2,126.45, their biggest intraday percentage gain since July 2017.
Macquarie Research expects foreign institutional investors (FIIs) to buy more than $1 billion of the shares on June 1 when a trading window for them opens for a day.
The Securities and Exchange Board of India has told stock exchanges to close effective July 1 the trading window, which allowed FIIs to trade among themselves in stocks where the foreigners' quota has been exhausted.
HDFC Bank's American Depositary Receipts (ADR) premium is expected to spike due to the ban since it will be the only route for FIIs to buy, Macquarie analysts wrote in a note, retaining a 'buy' on the stock.
Of 50 brokerages covering the stock, 45 rate it 'buy' or higher, 3 'hold' and 2 'sell'; their median target price is Rs 2,348, according to Thomson Reuters data. More than 4 million HDFC Bank shares changed hands vs 30-day moving average of around 1.5 million shares.
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