Shares of HDFC Bank rallied on Thursday as the counter witnessed robust buying ahead of the opening of FII buying window on June 1.
HDFC Bank, a favourite stock of foreign portfolio investors, could see buying of more than $1 billion when the window for FIIs to trade opens up on June 1, said Macquarie in a note.
The scrip was trading 2.86 per cent up at Rs 2,105.45 at around 1.30 pm (IST).
Shares of the lender opened at Rs 2,100.05 and touched a high and low of Rs 2,126.65 and Rs 2,081.50, respectively, in trade so far.
Benchmark BSE Sensex was up 192 points, or 0.55 per cent, at 35,098 at around the same time.Macquarie estimates headroom of about 1.4 per cent in the bank, which will open up for buying.
The scrapping of the separate window that allowed FIIs to trade among themselves in shares of companies that have touched the foreign holding limit could increase the quantum of buying in shares of the private bank on June 1, triggering a sharp upmove in the local shares.Billion dollars is a big quantum.
The stock could easily open up 4-5 per cent on that day, said Suresh Ganapathy, head of financial research at Macquarie.Shares of the lender had hit 52-week high of Rs 2126.65 on May 31, 2018 and 52-week low of Rs 1623 on June 1, 2017.