In an otherwise strong market, HDFC Bank’s share price was down from its Friday morning highs. A day after the lender decided to invest Rs 49.9 crore to Rs 69.9 crore in Go Digit Life Insurance in two instalments to purchase up to a 9.94% equity stake in the business, attention was focused on the lender’s shares.
According to the private lender, it has “an indicative and non-binding term sheet with Go Digit Life Insurance.” The insurance firm intends to conduct life insurance business in India, subject to the Insurance Regulatory and Development Authority of India’s (IRDAI) grant of a certificate of registration, according to a statement issued by HDFC Bank.
The HDFC Bank stock price opened at Rs 1,468.25 and closed at Rs 1,481.45, up more than 1% from Thursday’s closing price of Rs 1,463.85 on the BSE.
HDFC Bank is still one of global brokerage Macquarie’s top picks.
At 11.30 a.m., the banking index, Nifty Bank, was up 0.38% to 39,099.80. The index’s top contributors were SBI, HDFC Bank, and Kotak Mahindra Bank.
Meanwhile, the BSE Sensex and NSE Nifty50 in India rose on Friday, supported by gains across sectors, as Dalal Street began a new monthly derivatives series. Gains in financial, information technology, and consumer goods stocks were the largest contributors to the rise in both headline indices.