Overseas investors continue to cut shareholding in both HDFC, HDFC Bank

FPIs' stake down over 400 bps in both, move paves way for global index inclusion of merged unit

Foreign portfolio investors (FPIs) continue to cut their shareholding in both Housing Development Finance Corp (HDFC) and HDFC Bank. As per latest data, during the June 2022-23 quarter (Q1FY23), FPIs held 68.1 per cent and 65.96 per cent, respectively, in HDFC and HDFC Bank. Overseas shareholding is down 111/406 basis points (bps) and 260/412 bps on the quarter-on-quarter (QoQ)/year-to-date (YTD) basis in HDFC and HDFC Bank, respectively.

FPIs pruning their holdings in the domestic financial sector powerhouses has weighed on their share price performance. On a YTD basis, HDFC and HDFC Bank are down 16 per cent and 8.7 percent. In