Amalgamation-bound HDFC twins soar more than 5% each on MSCI tweak

Both stocks were the biggest gainers in both the Sensex and Nifty indices and accounted for nearly half of the gains made by these indices

Shares of HDFC Bank and parent Housing Development Finance Corp (HDFC) jumped more than 5 per cent each on optimism that their amalgamation will attract higher capital flows from passive trackers than previously anticipated.

The optimism follows a rule tweak by global index provider MSCI on treatment of stocks M&A-bound in its indices. M&A stands for merger and acquisition.

“MSCI has come up with new rules on how to handle corporate events like M&A and that will remove the technical overhang of HDFC Bank. What these new rules imply is that HDFC Bank will be considered as an extension of