HDFC sees a block deal

The HDFC counter witnessed a block deal of 5 lakh shares in the morning trade at Rs 820 per share. The stock as a result hit a new high of Rs 830 intra day, before ending 1.95 per cent lower to close at Rs 803.75.

The counter witnessed impressive volumes of 7.64 lakh shares on the Bombay Stock Exchange and over 3.4 lakh shares on the National Stock Exchange. According to market sources, the Rs 41 crore deal was struck between the two FIIs.

Block deals have become the flavour of the market these days. Yesterday, Deutsche Securities (Mauritius) bought about 3.7 per cent in HDFC Bank at Rs 713.4 crore. It bought 1.16 crore shares at Rs 615 per share in a block deal on the BSE within minutes of trading hours opening. The Singapore-based JP Morgan Partners' (formerly the Chase Group) India private equity fund (Mauritius) sold its stake.

A head of equity with a foreign broking firm said, " FIIs are comfortable executing a block deal as it does not disturb the stock price on the bourses and at times the identity of the end buyer or the seller is protected."