HDFC Bank surged to a record high as RBI has allowed foreign investors to resume buying.

Shares of HDFC Bank Ltd gained as much as 9.5 per cent to a record high of Rs 1,454.

The Reserve Bank of India had on Thursday allowed foreign investors to resume buying in HDFC Bank after foreign holding in the bank fell below the maximum limit of 74 per cent.

Nearly 20 million shares change hands in the first five minutes after the bell, about 14 times the 30-day moving average.

Nifty Private Bank index rose 2.95 per cent.

Nifty Bank Index and Nifty Financial Services index touched a record high.

“Depending upon foreign interest, the foreign ownership can go up fairly quickly given the likely low FII headroom," Morgan Stanley analysts say in a note on HDFC Bank.