Indian shares face muted open as MSCI rejig looms; HDFC Bank CEO to exit

  • Sashidhar Jagdishan will not seek reappointment as HDFC Bank CEO.
  • HDFC Bank shares rose around 2% in early Monday trading.
  • Kaizad Bharucha is among two options for the next CEO.

Indian shares were set for a muted opening after the Nifty 50 fell for a third consecutive week, with GIFT Nifty futures at 24,222.5 points at 8:11 a.m. IST. Investors were preparing for potential volatility from MSCI’s quarterly index changes, which will be implemented at Monday’s close and take effect on September 1. The August review added four Indian stocks to MSCI’s widely tracked Global Standard index and removed three. It will be the first rebalancing under India’s new closing auction system, which has produced sharp benchmark swings, particularly during monthly derivatives expiry days. Global sentiment also weakened after U.S. forces struck two Iranian launchers, while Brent crude rose about 2.5% to $90 a barrel and Asian markets fell 0.7%. HDFC Bank shares rose around 2% in early trading after Chief Executive Sashidhar Jagdishan said he would not seek reappointment. Jagdishan, appointed in October 2020, oversaw the merger with HDFC Ltd and the creation of one of India’s largest financial services firms. The shares are down about 26% this year and were about 40% foreign-owned at the end of June. Analysts said an accelerated CEO search could reduce uncertainty. Deputy Managing Director Kaizad Bharucha is likely to be one of two options for the role, while the bank is also seeking an external candidate in line with central bank rules. Analysts cited resilient asset quality and the successful merger during Jagdishan’s tenure, but said shareholder returns and profitability metrics lagged, while recent product mis-selling and business-overreach concerns had affected the bank’s image.

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Indian shares face muted open as MSCI rejig looms; HDFC Bank CEO to exit - CoinPost Terminal