Bandhan Bank shares jumped over 20 percent on Friday following news that the stock will be added to the MSCI Index. The stock jumped as much as 19.99 percent to Rs 607.95 per share on the NSE in intraday trade. Gruh Finance shares jumped also jumped 19.9 percent to Rs 327.40 per share.
According to a note on the MSCI, Bandhan Bank will be added to the MSCI index, effective October 16, following the bank's acquisition of Gruh Finance. “We expect the stock to be included in the index with the weight of approximately 50 basis points, which could bring flow of US$180 million,” said Motilal Oswal in a note.
At 9:57 am, Bandhan Bank shares traded 14.12 percent up at Rs 578.20 per share on the NSE, while Gruh Finance was up 11.97 percent at Rs 305.50 per share. The Nifty 50 was trading 121.65 points, or 1.08 percent, up at 11,356.20.
In one month, Bandhan Bank surged 31.25 percent while Gruh Finance jumped 27.89 percent.
Both stocks have been rising since the National Company Law Tribunal (NCLT) cleared the scheme of amalgamation between the bank and the housing finance company. The merger will be effective from October 17.
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First Published: IST