Mumbai, March 9 The recent interest from foreign institutional investors in the stock of Housing Development Finance Corporation (HDFC) seems to have boosted the housing finance company’s stock price.
The stock of HDFC was up by 2.65 per cent, while the benchmark Sensex was down almost two per cent on Monday. The stock closed at Rs 1,255.80.
The stock price of HDFC witnessed a high of Rs 1,268 on Monday after it opened at Rs 1,210, and touched a low of Rs 1,201.
The stock had recorded its 52-week low last week at Rs 1,116.1.
The main factor influencing price of any stock is the FII trading activity related to it, said Mr Vaibhav Agrawal, analyst with Angel Broking Ltd.
In the case of HDFC too the fact that FIIs have bought the stock is a sentiment booster, he added.
Foreign fund Europacific Growth Fund, through open market operations, has hiked its stake in HDFC to 5.42 per cent.
Europacific Growth Fund had purchased 18 lakh shares, representing 0.63 per cent stake, in the company, according to the disclosure by HDFC on the BSE.
The fund already held 4.79 per cent stake in the company.
After the latest transaction, the FII holds over 1.54 crore shares, representing 5.42 per cent stake, in HDFC.
In another transaction reported last week, foreign fund house Growth Fund of America Inc picked up 1.7 per cent stake in HDFC for Rs 560 crore through open market operations.
The company has been one of the favourite counters for FIIs. Citigroup, CMP Asia, DB International, Merrill Lynch, Aberdeen Asset Management, Copthal Mauritius Investment, JP Morgan and Government of Singpaore were holding stake in the company. Among domestic institutions, LIC and ICICI Prudential Life Insurance Co held sizeable number of shares in the company.
Last month, HDFC re-appointed Mr Deepak S. Parekh as the Managing Director of the company.
Among the big players, HDFC is yet to announce any cut in home loan rates.
As on December 31, HDFC’s capital adequacy ratio stood at 16 per cent and gross NPAs were at 1.01 per cent of the loan portfolio.
The loan book grew by 24 per cent, out of which total sanctions grew by 15 per cent and disbursements grew by 22 per cent.
