The Nifty 50 ended lower on Monday, dragged down by significant sell-offs in banks, auto, and consumer stocks. According to reports from The Economic Times, the escalation in Iran-Israel war tensions, elevated crude oil prices, and the rupee's fresh lifetime lows further dented market confidence. Nifty ended with sharp cuts on Monday as these geopolitical factors weighed heavily on investor sentiment across sectors.
HDFC Bank shares have declined more than 10% over the last three trading sessions, falling from around ₹843 to ₹754 per share on the NSE. The stock has been under sharp selling pressure since the abrupt resignation of non-executive chairman Atanu Chakraborty, which has raised concerns around leadership continuity and governance in the near term. As of March 23, 10:41 am, the stock was trading around ₹755.45 and down 3.20% intraday from the previous close of ₹780.45. The recent decline has been particularly severe, with the stock sliding from ₹887.75 to ₹751, marking a decline of over 15% and putting it on track for its worst monthly fall since March 2020, when it had dropped 26.8% during the COVID-19-led market crash.
Amid the ongoing uncertainty, the Reserve Bank of India has stepped in with a reassuring stance. The RBI approved HDFC Bank's request for a transition arrangement regarding the position of Part-Time Chairman. In its statement, the regulator clarified that it has taken note of the recent developments and emphasized that no material governance concerns have been identified based on its periodic assessments. This regulatory comfort has helped ease immediate fears, with the interim appointment of Keki Mistry as chairman expected to provide temporary stability. The RBI's statement confirming no material governance concerns adds further comfort to investors in the near term.
Vinay Rajani, Senior Technical Research Analyst at HDFC Securities, noted that Nifty remains firmly in the bears' grip, with every intraday recovery being savagely sold off, particularly after breaching key support at 22,930. As reported by The Economic Times, the near-term floor now eyes 22,400, beyond which a breakdown could drag the index toward its 52-week low of 21,743. Upside resistance has shifted lower to the 22,850-22,900 band.
Despite the sharp correction, HDFC Bank's underlying fundamentals remain robust. The bank reported a PAT growth of around 11% in Q3FY26, while asset quality stayed stable with GNPA at 1.24% and NNPA at 0.42%. The lender continues to maintain strong capital adequacy at approximately 19.9%, along with a controlled cost-to-income ratio. The bank has also shown healthy loan and deposit growth, reinforcing its balance sheet strength. However, some operational challenges remain, including post-merger adjustments with a high loan-to-deposit ratio and relatively slower retail loan growth, combined with some shift in market share toward large PSU banks.
