Business Desk, New Delhi. HDFC Bank is the largest bank in the country. The bank's stock ( HDFC Bank Share ) has been witnessing a tremendous rise in the last few sessions.

On Wednesday also, the bank's shares rose more than 2 percent to close at Rs 1,767.70 per share. This is an all-time high so far. On July 4, the bank's stock touched a 52-week high.

Why is the stock rising?

The weighting of the private sector lender is expected to double in the MSCI Emerging Markets Index. This expectation has led to a sharp rise in the bank's stock. The stake of foreign portfolio investors (FPIs) in the bank has fallen below the limit of 55 per cent set by the global index provider.

HDFC Bank informed the stock market about this. Apart from this, the bank said that its American Depository Receipt (ADR) has increased by 4.48 percent to $ 66.97. This increase has happened overnight.

According to the information given by the bank, foreign shareholding in the bank has increased to 54.83 percent by June 2024. It was 55.54 percent in the March quarter.

If foreign shareholding in the bank declines, it affects the weightage of the bank. Currently, HDFC Bank's weightage in MSCI India is 3.9 percent, which is expected to go up to 7.8 percent.

How much can the stock rise

HDFC Bank's stock has gained more than 19 per cent since June 4. During the same period, HDFC Bank's stock in the Nifty Bank index has gained 13 per cent and HDFC Bank's stock in the Nifty benchmark index has gained 11 per cent.

The bank's shares are expected to rise further. Market experts have predicted that if the weightage of HDFC Bank increases in MSCI India, then the bank's stock may rise by 4 to 6 percent.