HDFC Bank shares fell 0.66% to ₹715.05 on Wednesday morning, touching a fresh 52-week low of ₹715.05 on the NSE, as reported by Business Standard. This represents a significant decline from the previous session's close and marks a further deterioration from the previous low of ₹722 touched on August 12, 2026. The stock opened at ₹724 and briefly touched a high of ₹725.40 before sliding to its intraday low, continuing the selling pressure on India's largest private sector lender by market capitalisation. The stock is currently trading below all its key moving averages, with the RSI also sitting below the 40 mark, reflecting the sustained bearish momentum.
Trading volume stood at 61.68 lakh shares with a traded value of ₹444.17 crore, as reported by The Hindu BusinessLine. The stock has now lost nearly 28% over the past year and is down over 27% year-to-date, sharply underperforming the Nifty 50, which is down roughly 7.83% YTD. Over three and five years, HDFC Bank has returned negative 9.59% and negative 4.94% respectively, against Nifty 50 gains of 24.80% and 45.45% over the same periods. In calendar year 2026, ITC (down 34%), HDFC Bank (down 28%), and Dabur India (down 21%) have underperformed the market by falling more than 20% each, while the BSE Sensex was down 9.8% during the same period. The scale of the damage is visible at the index level, with Nifty falling 1,915 points YTD, and HDFC Bank alone accounting for 915 points of that decline, reflecting its outsized 10.3% weightage in the index.
Mutual funds hold close to 37% of HDFC Bank shares through various schemes, with 59 mutual funds now owning shares in the counter, up from 51 in December 2025, as reported by Essential Business Intelligence. The value of mutual fund holding stands at nearly ₹4.1 lakh crore, which works out to 10.6% of total equity-oriented scheme AUM and 4.7% of the entire mutual fund industry's AUM. Among the funds with the highest single-stock exposure to HDFC Bank are Nippon Large Cap Fund at 9.91% of AUM, Mirae Asset Large Cap at 9.43%, Parag Parikh Flexi Cap at 8.3%, SBI Large Cap Fund at 8.7%, and HDFC Large Cap Fund at 7.92%. On a YTD basis, mutual funds have net bought 55.4 crore shares of HDFC Bank, equivalent to a 3.6% stake, with ICICI Prudential MF and Nippon India MF leading the buying, adding 1,920.5 lakh shares and 1,070.1 lakh shares respectively.
Market capitalisation stood at approximately ₹11.07 lakh crore, with the stock's annualised volatility at 25.79% and applicable margin rate at 12.50%, according to The Hindu BusinessLine. The symbol P/E ratio is 14.22. The low Liquidity Coverage Ratio (LCR) of 115% along with the stretched credit-deposit (CD) ratio of 96% limits HDFC Bank's ability to grow at a faster pace. Consequently, loan growth has been supported by higher growth in the wholesale portfolio, which weighed on the net interest margin (NIM) performance, as noted by JM Financial Institutional Securities. The ownership mix is also shifting, with FII holding falling from 48.8% in December 2025 to 41.8% in June 2026, while domestic institutional investors have picked up the slack, rising from 35.8% to 41.8% over the same period.
Analysts at brokerages tracking the sector note that while NIM fell quarter-on-quarter across most banks in the first quarter, return on assets and return on risk-weighted assets held relatively steadier, a distinction the market appears to be overlooking, as reported by The Hindu BusinessLine. FCNR deposit inflows are expected to add approximately three percentage points to system deposit growth, projected at 13.5% for FY27. JM Financial expects HDFC Bank to deliver 15% loan and 14% earnings per share (EPS) compound annual growth rate (CAGR) over FY26–28E, translating into an average RoA/RoE of 1.8%/14% over FY27–28E. Despite the underperformance, 48 of 49 analysts tracking HDFC Bank, or 98%, have a BUY rating on the stock, with the 12-month consensus target price standing at ₹1,025, implying an upside of 41% from current levels. The stock's price-to-book ratio has fallen from 2.8x a year ago and a five-year average of 2.9x to 1.8x currently, with the one-year forward P/B at just 1.7x.
