HDFC Asset Management Corporation (AMC) shares surged 5% to Rs 1,761.50 in intraday trade on Tuesday after SBI Mutual Fund (MF) acquired more than 2% stake in the company through the open market.

On Monday, March 20, 2023, SBI MF bought 4.73 million shares representing a 2.2% stake in AMC for Rs 757.4 crore through open market transactions. Block trade data showed that SBI MF bought shares at Rs 1,600 each on the NSE.

However, GQG Partners Emerging Markets Equity Fund sold 2.48 million HDFC AMC shares worth Rs 396.83 crore. Holding pattern data showed foreign portfolios had 4.86 million shares, or 2.28% of the company’s stake, at the end of the December 2022 quarter.

HDFC AMC traded 4% higher at Rs 1,746 at 11:25 am, while the Nifty 50 gained 0.43%. A total of 1.4 million shares changed hands on the NSE and BSE.

Meanwhile, the stock hit a more than three-year low of Rs 1,589.50 on the NSE on Monday. It hit its lowest level since May 2019. The stock has underperformed the market over the past three months, with shares down 22% compared with a 5% drop in the S&P BSE Sensex.

HDFC AMC is India’s leading AMC with assets under management (AUM closing) of Rs 4.48 trillion as on December 31, 2022.