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ADR for HDFC Bank increases by 7% as Q4 results improves scope amidst low FII shareholding

ADR for HDFC Bank increases by 7% as Q4 results improves scope amidst low FII shareholding
Image Source: Mint
The US-listed shares of HDFC Bank surged more than 7% overnight, and the stock is expected to continue its upward trend on Friday. After the biggest private lender in India provided positive business updates for the fourth quarter (Q4FY24) earlier today, HDFC Bank’s American Depository Receipts (ADR) on the New York Stock Exchange (NYSE) saw a 6.21 percent increase at $69.90.

The ownership of foreign institutional investors (FII) in HDFC Bank decreased during the March 2024 quarter, according to shareholding data, notwithstanding this.

A US bank will issue an American Depositary Receipt (ADR), which is essentially a special certificate representing the shares of a foreign corporation. Similar to ordinary shares of US corporations, these ADRs are tradeable on US stock exchanges.

After holding 52.39 percent of HDFC Bank in the December quarter, the FII’s holdings fell to 47.83 percent in the March 2024 quarter.

Current Share Price of HDFC Bank

HDFC Bank’s shares opened at ₹1505 on Thursday and increased by about 2% to reach an intraday high of ₹1529.85, compared to a 52-week high of ₹1,757.80 per share on the BSE. On the BSE, shares ended the day 3.06 percent higher at ₹1,527.90 a share. Investors have received returns on their HDFC Bank shares of 6.25 percent over the last six months, and 5.5% in the last week alone.

Sneha Sengupta

Entertainment and Lifestyle news writer at MangoBunch.in