.Shares of HDFC Bank are up 15 per cent, while IndusInd Bank has gained 31 per cent on a month-to-date basis.
Private sector lenders HDFC Bank
and IndusInd Bank
have been put in the so-called ‘red flag’ list, a system used for monitoring foreign portfolio investor (FPI) limits. A listed company enters the list when the available legroom for overseas investment is less than 3 per cent of the permissible limit.
Shares of HDFC Bank are up 15 per cent, while IndusInd Bank has gained 31 per cent on a month-to-date basis. Market players said lot of foreign capital has flown into these two counters in recent weeks.
Once a stock enters this list, incremental FPI buying is permitted on condition that overseas investors will divest their excess holdings within five trading days from the day of breach of the sectoral cap of 74 per cent.